All this time, Obama and his big government health care allies have been repeating the line that a government run option was a necessity to keep health insurance companies accountable by providing much-needed competition. The White House completely ignores the fact that vast amounts of competition can be unleashed by forcing the insurance companies to compete nationally across state lines. To them, the only acceptable form of competition is big government.
Those of us who have been fighting a government takeover of health care have been predicting that a government option, which the White House is now calling exchanges, will crowd out private competition as the government, not beholden to making a profit, undercuts the private insurance companies through significantly lower premiums.
Today the White House is finally admitting that we have been right all along. Keen-eyed Mark Impomeni at Red State picked up on a point the White House made (probably inadvertently) that tells us the White House expects the government run health care entity will crowd out private insurance companies:
Undocumented immigrants would be able to buy insurance in the non-exchange private market, just as they do today. That market will shrink as the exchange takes hold, but it will still exist and will be subject to reforms such as the bans on pre-existing conditions and caps.
It is pretty darn clear through this statement that the government expects to take over much of America’s health care system. Remember when Obama said on Wednesday night that he expects only 5 percent of Americans will choose the government option? When the White House says it expects the private health insurance market to “shrink as the exchange takes hold,” that tells us they expect more than just 5 percent of Americans to choose the government option. It also tells us that they aren’t as interested in competition as they say they are. It also tells us that Rep. Joe Wilson was right in more ways than one.