Small Biz Health Care Daily: The Public Option Dance

On August 18, The Wall Street Journal reported that the Obama White House was trying to appease liberal Democrats seeking a government health care program, and moderate Democrats worried that this would lead to government-run health care.

The Journal noted:

The White House sought Monday to reassure allies that its enthusiasm for a government-sponsored insurance plan remains strong, following an uproar over comments by Health and Human Services Secretary Kathleen Sebelius.

The White House sent an email to members of Congress and other supporters saying that President Barack Obama wants a public insurance option as part of health-care overhaul. Ms. Sebelius seemed to suggest otherwise on Sunday, saying a public option isn't an “essential element.”

Monday's message took the form of a Q-and-A. One question said, "It is pretty clear that you are backing away from the public plan. Right?" The answer: "Nothing has changed." Another asked, "The White House is saying that Secretary Sebelius misspoke. Did she?" The response was, "No. The secretary said what many people in the administration have been saying for months."

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council, observed:

“If moderate Democrats are worried that the current push on health care reform will lead to government-run health care, they are absolutely correct. However, whether a government option is included in this package or not, make no mistake, whatever emerges from this process will move us closer to socialized medicine. It’s just a matter of how much further down the road we go. The current agenda of more government funding, more government mandates and regulations, and increased taxes, including ‘pay or play’ on business, makes private insurance more costly, while reducing choices for individuals and businesses in terms of coverage. In turn, advocates of big-government health care will proclaim that the private sector has failed – as the President is doing now with his demonizing insurers – and proclaim that the answer is still more government. This has been the agenda for advocates of nationalized health care for decades now, and it will continue to be so until the ultimate goal of a government-run system is reached. Moderates beware.”