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Reid's 'flex-public option' may represent viable third way on health care reform

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Even though it faces an uphill battle in the Senate, look for U.S. Sen. Harry Reid's, D-Nevada, flexible public option to become part of a universal health care bill.

That's because Reid's 'flex-pub' fits the federalist system of governance
(local-state-federal) practiced by the United States in that it enables states to 'opt-out' of the public option, provided they have a state-level plan for universal care and/or are complying with other federal requirements for universal health care coverage.

And, when one thinks about it, politically and operationally, a flex-public option makes a great deal of sense.

Politically, it enables a state to manage and resolve the problem of uninsured residents in its state on its own, without that state participating in a federal public health plan.

Operationally, the flex-pub accommodates the broad diversity that exists in the nation, and allows states to adapt a program to meet their unique needs. For example, New York state's health insurance needs differ markedly, in terms of case load and per person costs, from Montana's.

Further, as a colleague in public policy frequently says, "The states are great laboratories." There's much that the states and the federal government can learn from state-level administered plans in Massachusetts, and Minnesota. The states can learn about each other's 'best practices' regarding their efforts to achieve 100% insurance coverage. Lessons from these state-level laboratories will undoubtedly lead to more-efficient, less-costly public health insurance programs.

Fiscal Analysis: One can see how, politically, a flexible public option could find favor in the House/Senate conference committee: it's an appealing compromise, given the nation's ideological diversity (and divide) over how best to get to 100% coverage of its citizens.

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Last updated: November 26, 2009: 03:23 PM

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