Fishlore
Silver Member
In its original form, ACA provided for a government operated insurance company whose policies were to be sold on the exchanges. Congress mandated that the corporation must run on premiums only with no taxpayer subsidy of any kind. It was also required to operate under exactly the same mandates and regulations as every other company selling policies under ACA. The idea behind the plan was to ensure market competition in the many areas where only one or two companies were writing policies. A number of conservative politicians crowed about how the efficiency of private sector competition would allow for-profit companies to easily defeat the bloated, incompetent and wasteful federal bureaucracy in its attempt to sell insurance in the private market.
So, what happened? The lobbyists for the insurance industry who were writing large parts of ACA for the GOP took one look at the idea and shouted "Whoa!" They knew that a government program playing under the same rules but without the million dollar salaries and shareholder profits would easily out-compete the for-profit companies.
The Vermont program had its genesis at that moment. Eventually, as the costs of private insurance under ACA rise high enough, the nation will again turn to the government option as the way to transition to single payer. This will come on the national agenda in ten years or so.
So, what happened? The lobbyists for the insurance industry who were writing large parts of ACA for the GOP took one look at the idea and shouted "Whoa!" They knew that a government program playing under the same rules but without the million dollar salaries and shareholder profits would easily out-compete the for-profit companies.
The Vermont program had its genesis at that moment. Eventually, as the costs of private insurance under ACA rise high enough, the nation will again turn to the government option as the way to transition to single payer. This will come on the national agenda in ten years or so.