QUESTION: Two of the key players in the insurance industry, America's Health Insurance Plans and Blue Cross/Blue Shield, sent a letter to the Senate this morning saying that a government health insurance plan would, quote, "dismantle," end quote, private insurers.
Why are they wrong?
OBAMA: Well, let's -- let's talk first of all about health care reform more broadly.
I think in this debate there's been some notion that if we just stand pat, we're OK. And that's just not true.
You know, there are polls out that show that 70 percent or 80 percent of Americans are satisfied with the health insurance that they currently have.
The only problem is that premiums have been doubling every nine years, going up three times faster than wages.
So the notion that somehow we can just keep on doing what we're doing, and that's OK, that's just not true. We have a long-standing critical problem in our health care system that is
pulling down our economy. It's burdening families. It's burdening businesses. And it is the primary driver of our federal deficits. All right?
If we're spending $177 billion over 10 years to subsidize insurance companies under Medicare Advantage, when there's no showing that people are healthier using that program than the regular Medicare program, well, that's not a good deal
for taxpayers.
And
we're going to take that money and we're going to use it to provide better care at a cheaper cost to the American people. So, that's point number one.
Number two, while we are in the process of dealing with the cost issue, I think it's also wise policy and the right thing to do to start providing coverage for people who don't have health insurance or are underinsured, are paying a lot of money for high deductibles.
Now, the public plan, I think, is an important tool to
discipline insurance companies. What we've said is, under our proposal,
let's have a system, the same way that federal employees do, same way that
members of Congress do, where we call it an exchange, but you can call it a marketplace, where, essentially, you've got a whole bunch of different plans.
If you like your plan and you like your doctor, you won't have to do a thing. You keep your plan; you keep your doctor. If your employer's providing you good health insurance, terrific.
We're not going to mess with it.
But, if you're a small-business person; if the insurance that's being offered is something you can't afford; if you want to shop for a better price, then you can go to this exchange, this marketplace, and you can -- look, OK, this is how much this plan costs; this is how much that plan costs; this is what the coverage is like; this is what fits for my family.
In answer to David's question, which you co-opted, we are still early in this process. So, you know, we have not drawn lines in the sand, other than that reform has to control costs and that it has to provide relief to people who don't have health insurance or are under-insured. You know, those are the broad parameters that we've discussed.
There are a whole host of other issues where ultimately I may have a strong opinion, and I will express those to members of Congress as this is shaping up. It's too early to say that.
Right now, I will say that our position is that a public plan makes sense.
Now, let me go to the -- the broader question you made about the public plan.
As I said before, I think that there is a legitimate concern, if the public plan was simply eating off the taxpayer trough, that it would be hard for private insurers to compete.
If, on the
other hand,
the public plan is structured in such a way where they've got to collect premiums and they've got to provide good services, then, if what the
insurance companies are saying is true, that they're doing
their best to serve their customers, that they're in the business of keeping people well and giving them security when they get sick,
they should be able to compete.
Now, if it turns out that the
public plan, for example,
is able to reduce administrative costs significantly, then you know what, I'd like the insurance companies to take note and say, hey, if the public plan can do that, why can't we?"
