Tuesday, May 26, 2009

Blue Cross Millionaires Are Scared to Compete With a Public Plan

by: Dean Baker

photo    The boys running the show at Blue Cross in North Carolina are running scared. They're worried that President Obama is going to treat them like autoworkers and make them actually compete in the market. The Blue Cross boys think that they belong in the same league as the Wall Street bankers and should just be allowed to collect their multi-million-dollar salaries without being forced to worry about things like competition.

    The basic story is that Blue Cross of North Carolina decided to jump the gun on President Obama and Congress and start running television ads telling people how awful a public health care plan would be. According to the ads, people enrolled in the public health care plan wouldn't have a choice of doctors, would face long waiting periods for appointments and procedures and would not even be able to get a clerk to answer questions on billing.

    That sounds pretty awful, but if it were true, you have to wonder why Blue Cross of North Carolina is so worried. After all, President Obama is not proposing that anyone would be forced to join a public plan. He just proposed that people have the option to buy into a public plan. Is Blue Cross of North Carolina really that terrified that it will be unable to compete with a public plan that doesn't let patients choose their doctor, subjects them to long waits and doesn't answer questions about billing?

    Of course, if the ads being planned by Blue Cross of North Carolina were accurate, then it would not be concerned about a public plan. The reason that Blue Cross of North Carolina is running the ads is that it knows the ads are not true. There is no reason to think that a public plan will offer less choice, require longer waits or provide poorer service than a private plan, like Blue Cross of North Carolina. And there are reasons for believing that a public plan might cost considerably less.


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