So far, one of the sharpest points of debate when it comes to health care and health insurance reform is whether we should have a public-private health insurance plan to compete with other plans.
Well, it’s a point of debate, but ultimately likely to happen with advocating lawmakers enjoying a heavy majority in Congress and an ally in the White House.
But would a public-private plan mean for the federal budget?
The Congressional Budget Office recently released a report explaining how significant reforms might affect the government’s pocketbook, reported the Washington Post.
In general, the CBO looks at health reform in two ways: the government would have strong control over the health insurance industry, or the private system maintains its independence with an added public option to compete.
If the government did keep a tight grip on the industry, then it would be considered by the CBO as a government program, one that belongs in the federal budget, writes CBO Director Douglas Elmendorf.
On the other hand, says Elmendorf, a mostly privately run health insurance system would not belong in the budget.
And as long as people had a wide range of choices — and the government wasn’t in charge of collecting premiums for the public-private option — then a mandate for all Americans to purchase health insurance couldn’t be considered a form of federal taxation.
Also, the collection of premiums wouldn’t be considered federal revenue in a market dominated by private insurance.