Jeff Bingaman United States Senator from New Mexico

The Need for a Public Option

One key element of the debate we’ve been having is whether to create a so-called “public option” – a health care plan available to all Americans that ensures that there is at least one health insurance option for Americans that is affordable and would focus exclusively on providing meaningful care, not turning a profit. With my strong support, the Health, Education, Labor and Pensions (HELP) Committee approved a bill which contains a robust public option described below:

• Run by the Department of Health and Human Services (HHS). The Secretary of HHS would have the authority to negotiate provider payment rates that are no more than the local average private rates, which would help control costs. The government would provide funding for the first three months of the plan in order to get it up and running and make the public option available in all parts of the country. The funding would be repaid once the public option began operating.
• Public option would be one of the Gateway choices. The public option would be available to all Americans alongside private insurance options within the newly established health insurance “Gateways.”  .
• States would help tailor a public plan to their needs. Each state would create an Advisory Council to recommend strategies for quality improvement and affordability. This would allow states to implement strategies that would provide efficient, affordable care to their residents.
• Participation would be purely voluntary; Americans would have the choice of participating in the public option but there would be no obligation to do so.