June 23, 2009
Posted: June 23rd, 2009 01:11 PM ET

WASHINGTON (CNN) – President Barack Obama said Tuesday that there is a "legitimate concern" about the ability of private insurers to compete with a public plan "if the public plan is simply eating (from) the taxpayer trough."

If that's the case, it'd be tough for private insurers to compete, Obama said. If, on the other hand, the "public plan must collect premiums and provide (good) services" like private insurers, then private insurers should have no problem competing with a public option.

Obama said he was hopeful that an efficiently-run public plan could help push private insurers to make similar cost-cutting moves.

The president made his remarks during a news conference at the White House.

Filed under: President Obama


Setting the record straight - Page 2   August 22nd, 2009 12:09 am ET

[...] [...]

Obama’s Top Five Health Care Lies   July 2nd, 2009 1:50 am ET

[...] a public plan that could compete with private insurers on a level playing field and without "feeding off the public trough" as Obama [...]

Julia Byrd- Hayden Idaho   June 23rd, 2009 2:54 pm ET

Ask the rotten corrupt insurance companies how much they pay in bonsus for every denial that is generated, it's not about health care it's about money for these rich SOB's. One payor plan for all, that's the only way to go

LISA   June 23rd, 2009 2:53 pm ET

Right on Mr. President! Blue cross costs me more each year and yet
pays for less services. Now explain that to me?

Pat Dunedin Fl   June 23rd, 2009 2:51 pm ET

What a treat to hear Obama, after 8 years of the Village Idiot and
his court of Jesters , a man that can communicate with the
public is a Treat!!!!!!

ran   June 23rd, 2009 2:48 pm ET

I still do not get it. As long as health care insurance is for profit we will never get health care cost under control or available for us all. Health care is a right not a privilege for those who can afford it and our health should never be put up for any kind of profit.

mark   June 23rd, 2009 2:46 pm ET

if there is no public health insurance, the private insurances will be richer. there will be no competition. Therefore, the american people will end up paying more money for helth insurance.

Kevin from Co   June 23rd, 2009 2:41 pm ET

Govt run health insurance. Just a another step closer to socialism.

Larry   June 23rd, 2009 2:36 pm ET

AMEN ...

But I have a hard time believing that the Insurance companies will give up any of their huge profits

Just like the oil people ...

They have us all by the short hairs, and they like it that way ...

VGal   June 23rd, 2009 2:34 pm ET

Does ANYONE besides the Republicans actually FEEL SORRY for INSURANCE companies? They make record profits while denying coverage, exempting themselves from anything that takes away from their precious profits and are fat cats that are not run efficiently. This is HEALTH CARE we are talking about...

Ceasar the Great   June 23rd, 2009 2:34 pm ET

And whats to say the government is going to play fair?? Oh and heres another great story from a local Congressman. Dr. Steve Kagan (D, Wis) yesterday when asked about the fact that his area consisted of about 10,000 employees of big insurance if they should fear for their jobs? His response, well they are going to need to just roll with it if everything goes thru. Way to try and get re-elected Dr. Millionaire, just tell a big number of college educated people that they dont matter cuz your agenda is more important.

Carlena Smithey   June 23rd, 2009 2:34 pm ET

'private insurers shouldn't fear public plan '– oh, but yes they better!!

Sniffit   June 23rd, 2009 2:30 pm ET

He's right, but that won't stop the GOP fear mongering...nor will it stop the misrepresentations of what he's said and what he intends in order to achieve the state of fear they seek to instill. Enter GOPers stage right yammering McCarthyistic drivel.......

Doug   June 23rd, 2009 2:27 pm ET

If private insurers have nothing to fear, the public plan needs more work.

Patrick   June 23rd, 2009 2:25 pm ET

Go Obama – We need comprehensive health care reform.

He is the right man at the right time to push this American Right to good health care.

carlo   June 23rd, 2009 2:24 pm ET

You left out the comment the President made, which basically said that the insurance companies shouldn't be afraid of a public option if it is run by the government, which according to Republicans, can't run anything anyway.

How convenient of you CNN.

The Press Grills the President About Stuff | DEEP BRAIN DIARY   June 23rd, 2009 2:24 pm ET

[...] public option in health care reform is a good thing, not bad.  And insurance companies shouldn't be panicked by it.  Instead, they should worry [...]

Hugo   June 23rd, 2009 2:22 pm ET

Yes, we see how well the government leveled the playing fields for American business and industry in the past. Just take a good look at teh NAFTA and China trade agreements, level playing fields.....right, trust me!

RR   June 23rd, 2009 2:20 pm ET

yeah, just like the US Postal Service had not advantage over UPS or Fed Ex because teh USPS can get taxpayer money if it runs a deficit.

Deborah from KC/RN   June 23rd, 2009 2:14 pm ET

The only reason they fear a private plan is their huge profit centers. If, they were not taking out huge profits for their CEO's, Owners, and Stockholders, then the cost of health care could be reduced. Physicians, hospitals, and healthcare providers could be paid enough to stay in business and provide better health care for us all. As we have had demonstrated to us quite clearly, by our financial system and its profit centers; no profit is ever enough. On the one hand they say "Oh, it will be terrible healthcare and you won't have any choices; on the other hand they say, "Oh, its unfair because the Private Insurance Companies could never compete with the Public Plan". Right because the Private Healthcare system is only concerned about Profit. The Public System would be concerned about providing good health care. Medicare patients receive good healthcare. Unless they have been forced to select one of the Private Insurance Companies, like Humana, to "manage their benefits"; Medicare Patients do not have to get prior approval or permission to get their care. That's so the private system can "Manage" the money into their pockets, instead of allowing the healthcare a person needs.

Double talk   June 23rd, 2009 2:09 pm ET

If people have to pay similar premiums for both the private plans and the public plans, what is the point of having the government get into the insurance and health care business? This is circular logic and it appears that, short of a campaign slogan and a sound byte, there is no substance to Oblamo's health care reform initiatives.

Liberty   June 23rd, 2009 2:07 pm ET

While I agree Health Care is out of control I do not think government run plans are the answer. My biggest fear is that the government does not do anything efficiently and if you see what Medicaid/Medicare have done to our budget just wait until my second biggest fear hits. Private companies will drop insurance plans for employees like the over priced burden they are and tell their employees to pick up the government plan and boom they are off the hook, increasing the cost of said government plans, etc. etc.

DJJ   June 23rd, 2009 2:06 pm ET

To President Obama – Sir, I am not interested in reading or hearing about private versus public, co-ops, impasses in Congress, Republican intransigence, or Democratic compromising.
Sir, you campaigned on getting the same health insurance you had as a member of Congress for all Americans.
That platform was one of the reasons I voted for you.
Sir, you campaigned on it, it is now time for you to deliver on your campaign promise.
Where is my "same as a member of Congress" health insurance?
Perhaps we Americans should create a post election requirement of our candidates, if you campaign for or against a particular issue, then once in office, that is how said candidate MUST vote that issue.
If a candidate campaigns promising a particular course of action, then said elected official should be held to that standard.
Where is my Congressional health insurance, Mr. President?
Dennis in Cleveland

Me in Big D   June 23rd, 2009 2:01 pm ET

Hogwash!

Eileen   June 23rd, 2009 2:00 pm ET

I welcome the public option. The insurance industry has had free reign and it's time for a little healthy competition. Overpriced coverage with limited or "rationed" services is what I see now with my insurer – it can't get worse.

Obama Victim   June 23rd, 2009 1:59 pm ET

"If, on the other hand, the "public plan must collect premiums and provide (good) services" like private insurers, then private insurers should have no problem competing with a public option. "

Riiiiiiight. And what happens if/when the "Public Plan" begins losing money?? It's called "taxes".

I challenge ANYONE to name ONE Government program which is completely self-sufficient (paid by premiums) and NOT supported by tax-dollars.

Please – name just one program!

Gene   June 23rd, 2009 1:58 pm ET

Insurance companies run their business on the principle of providing the absolute least amount of services that are "medically necessary" in their opinions.. as a result, common sense often goes out the window.

I love the idea of a public plan and giving people the option of choosing which way they want to go.

Texas Pioneer   June 23rd, 2009 1:57 pm ET

Time for all of the people in this country to have access to affordable health care.
If the party of NO has a good idea for something different than the public insurance idea. Lets hear it.
We have needed something besides business as usual for the last 16 years and the elections next year are calling.
I dare you to try and kill this health care movement.

Bill   June 23rd, 2009 1:56 pm ET

Of course they are scared! They might lose profits which is the name of their game–not health care. The US Constitution speaks of the "right to life, liberty and the pursuit of happiness." Doesn't health connote life? Thus, health care is a right for all citizens, not a privilege that fuels the bottom-line profits of corporations!!!

Ted Tartaglia   June 23rd, 2009 1:56 pm ET

Left to their own devices, the insurance companies will continue the status quo of continually increasing premiums and co-pays with decreasing levels of service. Insurance companies are only concerned with maximizing profits. Only with true competition from a public healthcare option will healthcare costs stabilize.

Gunnar Lawless   June 23rd, 2009 1:54 pm ET

Private insurance companies, you listening to this? You believing this? Looks like your days are numbered, as the government-run health insurance will be much cheaper (at taxpayer expense) and many Americans will go the cheaper route as always.

Chas in Iowa   June 23rd, 2009 1:53 pm ET

I'd like to see an honest discussion about a bigger issue relating to health care.
Who is in charge!
I'm sick, literally, of being denied medical services by the insurance companies and having to pay the bills for treatment myself even though I have paid for coverage through one of the nations biggest insurers.
When are we going to put health care decisions back in the hands of our physicians?

laura   June 23rd, 2009 1:51 pm ET

Exactly same rules. A little competion never hurt anyone. Why should private insures be able to play GOD and decide who can get insurance and who can't an what is covered. Pass it already.

I have health a insurance ,a PPO, and I still have to jump through hoops to get answers of why wasn't this covered, but this was, even though it states that everything is covered.

No More!   June 23rd, 2009 1:48 pm ET

Public option will be the only option, we will all be on plans similar to Medicare. Private insurance will be gone. What employer would pay the higher premiums for private when public would be cheaper. Obamas money saving ideas are really great............cut out tests and limit care. We all know how well Medicare works, lousy care that is almost bankrupt and that is paid into by anyone working. The government can't even manage that. What makes you think they can manage universal coverage? Where are you going to find doctors to work for next to nothing? Who's going to pay the premiums of the "poor" people? Way too expensive!! Your dog will get better coverage than you will.

George Guadiane Austerlitz, NY   June 23rd, 2009 1:46 pm ET

Not my favorite set of circumstances, but, at this point in time, based on the actions of the private sector, I am MUCH less afraid of spending money on health care in a program designed and provided by this administration than I am from HMOs and the like.

Bingo   June 23rd, 2009 1:44 pm ET

Everything is in a name. "Public plan" for health care really means "taxpayer funded" health care plan. Anybody interested in paying more taxes for less service?

katiec   June 23rd, 2009 1:42 pm ET

The public option would make the insurance companies compete and we would get creditable, affordable insurance. The insurance, drug companies, hospitals etc have had the control of our health cared system for far too long and look what it has done to health care and us. Greed and power took over, rather than quality, performance and fairness.
72% of the American people support the public option. The politicians need to listen to and HEAR us.

Steve   June 23rd, 2009 1:40 pm ET

Seriously...the President has the nerve to stand there and scold the insurance industry about efficiency and excessive costs when we have a government that is growing at an uncontrolled pace. While I clearly agree that health care is broken, letting the government into the insurance business is not the right answer. The governement is not a model of efficiency and conservative fiscal management and I have no idea whey President Obama or his henchmen think that the government will do better.

America was not built on governement intervention and control. Time to drop the public plan idea.

The Original No Incumbents 2010   June 23rd, 2009 1:39 pm ET

Obama said. If, on the other hand, the "public plan must collect premiums and provide (good) services" like private insurers, then private insurers should have no problem competing with a public option.
Would all you Liberals just slow down and think about this for a moment. Read it let it soak in. If that is truly the case, then why do we need a public option? If everyone competes on a fair playing field, that sounds alot like a "Free Market".
But we all know this is not the case. This is politics and speaking from both sides of the mouth, slight of hand, saying one thing – then doing what you want. This is all about bigger government.

Tim   June 23rd, 2009 1:36 pm ET

Trust him ;)

After all, he is the agent of change.

David   June 23rd, 2009 1:35 pm ET

What private insurance companies will need to do is make a change in the industry.

First by cutting their overhead costs by not paying agents hundreds of dollars for each policy on an annual basis, for really providing a service that a website could provide. Insurance is not rocket science.

Also understanding that the gravey train has ended, and it's now time for private insurers to focus on providing services to maintain customers. No longer feeding off a captured audience.

If the private company offers better services than the public plan, then they will be able to pull customers. If not, they will lose customers. That's how the private sector works.

Dutch/Bad Newz, VA   June 23rd, 2009 1:32 pm ET

I agree Mr. President. Private insurers have been raping employers and employees for far too long. A public option is way overdue. I'm going to take Anderson Cooper's slogan and apply it to healthcare reform: "Keeping Them Honest."

Capt. Snarky   June 23rd, 2009 1:30 pm ET

Yeah, and I'm sure GM has no worries about a goobermint takeover, either. Oh, wait, Nevermind.

a good healthy dose of fear   June 23rd, 2009 1:29 pm ET

I like Obama, but I fear government and I think the Decl. of Inde. says that outright citizens need to, as I think the consti. does as well

so I say fear your govt. and hold the bastards accountable

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