What is the competition?
This is why I asked what a Public Option does differently from Aetna.
There is no difference.
They both do the exact same thing.
My argument is that when the payor has a profit motive, there's no incentive for that payor to negotiate lower costs. So if you have two parties who are both mutually benefiting from higher costs, what's the incentive to lower them?
Health insurance and health care are two different things. "Great coverage" doesn't mean anything because you're still restricted to your provider network. So you have no choice for your health care. You have no frame of reference and no ability to shop around for a doctor who might be the best one for you. You are limited by your insurance coverage. It's not freedom.
The only competition you are talking about is competition among payers for who reimburses your doctor, not competition for what doctor treats you best.
And hundreds of thousands of people have insurance and go broke from medical costs anyway. So you're not solving anything.
Also according to KFF, it costs the average business $15K to provide coverage to just one worker. And the worker is still paying $7,100 in premiums, deductibles, and other OOPE. All that goes away with M4A, and it saves everyone money, even the business.
So, let's do some math...
Right now, the median income in this country is $61,000.
Right now, the average worker who gets coverage through their employer, pays $7,100, or 12% of their income.
In M4A, that same worker would instead pay 4% of their income, or $2,440 if we use median income as the standard, and the business would pay 7.5% of its income. For almost every business, they will end up saving far, far more. Take Netflix for example:
Netflix
7,100 full-time workers
$845M in profit in 2018
Using KFF's metric, Netflix pays $106.5M to provide health care to all their workers.
Using M4A's 7.5% rate, Netflix pays $63.4M to provide health care to all their workers.
So M4A would save Netflix $43M.
What can they do with that?
Fund productions which create jobs (every show Netflix produces creates about 500 jobs, from production through distribution)
Give all its 7,100 employees a $6K raise
Acquire more content so people will subscribe to the service
Expand (thereby creating jobs)