at non-discriminatory prices will cause insurers to raise rates way beyond what anyone can afford.
Blue Shield was just eliminated from the pool of insurers who insure high-risk Californians (at impossibly high rates). Here is the story of Blue Shield's failure to contain costs.
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California has ousted Blue Shield, the state's second-largest not-for-profit health plan, from the state's high-risk medical insurance pool because its premiums were too high.
The pool, known as the Major Risk Medical Insurance Program, or MRMIP, insures more than 6,700 Californians who have been shut out of the private health insurance market because of pre-existing conditions.
Through MRMIP, such people are able to buy coverage from private insurers at premiums that are supposed to be 25% higher than the market rate for a comparable policy. The state reimburses the insurers for any losses they incur.
Despite the state's backing, Blue Shield's premiums have been substantially higher than those of the other two private insurers in the program, Kaiser Permanente and Anthem Blue Cross of California.
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http://www.latimes.com/business/la-fi-blueshield15-2009oct15,0,3875854.story?track=rssThis is what will happen over and over if the plan is passed without a public option. Private insurance companies will simply not comply with their obligations and laugh in the face of the government.
We have to have a robust public option that attracts as many Americans as possible. The private insurance companies are yet another corrupt segment of American society.