Negotiated Public Option vs. Medicare Plus 5% Public Option May Be a Disaster

Will the public plan have higher premiums than private insurance?

By Ezra Klein  |  October 30, 2009; 10:07 AM ET

I’ve been saying that a public option with negotiated rates probably won’t post much of a price advantage against private insurers. But according to the Congressional Budget Office (pdf), that’s was overoptimistic. The public option’s premiums, they say, will actually be more expensive than private insurance.

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