Economics

Don't Be Scared of a Health-Insurance Public Option

Government-backed Medicare for everyone would solve lot of problems and cost less than private insurance.

Three heads are better than one.

Photographer: Jill Toyoshiba/kansas city star/tns/getty images

One of the big debates in health care right now is whether to create a public option for health insurance. Most observers of Obamacare agree that the big problem is private insurers pulling out of health-care exchanges. That leaves smaller states with only one or two insurers participating, which kills competition in insurance markets and raises costs. Although there are many intermediate fixes available, some are suggesting bringing back an idea that didn’t make it into Obamacare -- a public option, with government selling insurance to anyone who wants to buy it. Yale political scientist Jacob Hacker writes:

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