The Community Health Option Kay Hagan supports is a completely government-run plan that will compete unfairly with private insurance companies.
With start-up costs provided by the federal government and guarantees against losses for at least two years, it will have a distinct cost advantage over for-profit and nonprofit insurance companies alike. With lower costs because of government financing, it will be able to attract more subscribers and drive other insurers out of business. It will also have an advantage over most insurers in its ability to compete across state lines instead of within a single state.
Government health insurance provides no more certainty of care than private insurance, but it provides a much greater risk of destroying innovation.
