riser :
Your understanding of the not--for-profit business model is poor. Not for profit doesn't mean prices will remain lower than a for profit company. In fact, that might even force prices to go up in a not for profit company. If you did a NFP, they could charge whatever they wanted and there would be little regulation over that, as opposed to for profit companies.
But there would be unlimited, equal, competition fighting for the same subscribers, giving way to sea of different companies offering the same type of coverage.
Have you ever even dealt with a not for profit insurance company? Because there is no share holders and no paid dividends, the surplus funds at the end of the year go back into the service pool. What is hard to understand about that? In Michigan I dealt with a few not for profit health insurance companies and coverage and premiums were ALWAYS lower than private, for profit institutions. This seems to be the trend across many, many states as well assuming that the not for profits can still remain competitive. In a market where all competition is equal, I don't see where the problem is.
Again, not rocket surgeon math.
@OMG, I think we have very similar opinions on this, but I view the oversight differently than you do because I see medicare being a perfect example of how the system could work if everyone was given a public option. This isn't to say that every illness on the earth should be covered, but basic services, preventative care, check up and emergencies should be covered by a very basic public option. From there having insurance be deregulated across state lines would provide a solid base for competition while still having the default public option to cover basic needs. This would provide 3 things for the private sector:
1.) They do not need to cover the small items and can offer extended care packages that just cover serious illness or hardship, creating an opportunity for them to create more profits because their subscriber base is healthier than an uninsured, partially insured or person who has not gotten regular checkups.
2.) Because there would be no inflated prices for basic services based on profits margins, the cost of procedures would go down because of raw buying power of the government, being able to leverage contracts that accurately address public health while keeping the costs down by buying in huge bulk numbers. I see Rx going down as well because of the same scenario, with competition being created by the contracts the government negotiates.
3.) States would have to be more competitive to bring insurance companies to their state. Regulations could even be passed that if you are going to sell insurance in a state, that you at least have 1 brick and mortar building within the state you want to operate. Along with providing a better environment for equal competition , this would provide many safeguards to the community against exploitation.
I want to epilogue with the statement that I'm not an expert, but I have thought long and hard about this and considered multiple angles of the same scenario. The one truth that I consistently come back to is that for profit health insurance is inhumane and discounts the life of a human for the sake of a dollar. The public option creates a baseline for public health that, if you cannot find a private or in my scenario NFP provider, you can always default back to the public option while you are looking for something better. It's an option, not a necessity. What we have currently is a mandate, and like anything dealing with human nature we'd much rather decide on what we want by being given options, not by being told.