State Employee Plans as a ‘Public Option’ Model
Some analysts have suggested that the experience of state governments in fielding a "public plan" for employees that competes with private health plans for the premium dollars of state employees is the proof that public plans can compete fairly and effectively.
But the experience of the states provides a good example of a "public plan" only if one is willing to stretch the meaning of a public plan well beyond all recognition, writes Robert E. Moffit, writing for The Heritage Foundation.
State employee health plans are really private health plans under contract with state government, and the simple fact that they are self-insured (like many private plans) does not make them public entities.
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