WASHINGTON — At a time when both political parties are worrying about the federal deficit, an unexpected — and unorthodox — proposal is coming back from the shadows of last year’s health care debate — the “public option.”
The idea of creating a government health-insurance program was roundly rejected last year, but the 128 House Democrats pushing to reconsider the idea are now advancing the argument that it would help hold down federal spending.
Their bill, which faces long odds, would allow Americans who do not get insurance at work to choose a government plan for their health coverage starting in 2014.
“There is all this concern about the deficit,” said Rep. Lynn Woolsey, D-Calif., a leading champion of the proposal. “Well, guess what: This would reduce the deficit because it saves so much money.”
Woolsey and her allies, including Reps. Jan Schakowsky of Illinois and Fortney “Pete” Stark of California, are armed with a new analysis by the nonpartisan Congressional Budget Office. It projects the public option could save the federal government $68 billion between 2014 and 2020, according to Democrats.
A government plan could save money by lowering administrative costs and by paying hospitals and doctors less than commercial insurance plans, analysts have said. That could result in lower premiums and lower government subsidies.
Insurance companies, hospitals and other businesses say a public option would undermine existing employer-provided insurance and set the stage for a single-payer system.
Don’t expect any Republican budget hawks to sign on, even though the $68 billion matches the savings that the leading House GOP health care proposal would have generated, according to the budget office. Republicans lambasted the public option for much of last year as just more government.
With a full plate of legislative business, House Democratic leaders also have little interest in restarting a health care debate that split their own ranks.
Woolsey said she is willing to wait. “This will be there for the next Congress,” she said.
