During a Friday tele-town hall event, Senate Majority Leader Harry Reid told constituents that he doesn't think the public option ought to be a government run program like Medicare, but instead favors a "private entity that has direction from the federal government so people that don't fall within the parameters of being able to get insurance from their employers, they would have a place to go."
Today, a Reid spokesperson tells me, "[t]he idea is that [Department of Health and Human Services] could contract with a third-party administrator to do the administrative stuff. It would still be policies set by HHS."
Though this isn't the reform community's first preference, it is something they could get behind.
According to Richard Kirsch, National Campaign Manager for Health Care for America Now, such an arrangement might work out OK.
The public option "doesn't have to be a government agency, though we'd prefer it," Kirsch said. "The entity would have to be accountable to the public, it's risks borne by the public, and its policies set by a public entity.
Medicare, for instance, contracts out certain administrative tasks to private parties, but its prices and policies are set by the government, which bears all of the risk, and the program is accountable to voters--not to shareholders or a board of directors.
On Friday, Reid was careful to draw a distinction between the private entity he envisioned and Medicare, but those differences appear to have little to do with the administration of the plan (as Reid implied) and perhaps have more to do with the more substantive matters like price setting.

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matyra
September 1, 2009 2:53 PM
Teddy Mac?
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CT Voter
September 1, 2009 2:58 PM in reply to matyra
Nicely done!
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Docb
September 1, 2009 3:11 PM in reply to CT Voter
Another CORPORATE GIMME---Who would that be ---say a big insurance company!!!Right chicken neck reid..He is clueless and useless! Makes no sense what so ever...
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ericf
September 1, 2009 2:55 PM
Hasn't the involvement of private insurers proven to increase Medicare costs? This contracted company is still going to want big exec compensation and shareholder dividends, not to mention the army of lobbyists they'll hire at public expense.
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The Commenter Formerly Known as NCSteve
September 1, 2009 3:18 PM in reply to ericf
You're confusing private insurance with private administration. Basically, he's talking about something a lot like what most companies that are self-insured do. It would have the distinct advantage of making it possible to get the public option up and running one hell of a lot faster than if they have to set an entire new government agency and staff it with new federal civil service employees.
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JohnW1141
September 1, 2009 2:57 PM
I smell a rat.
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Xantar
September 1, 2009 3:02 PM
I say let this play out. It could be that Reid is selling out, but it also could be that Reid is playing a semantic game in order to garner more support for a stealth public option in sheep's clothing (to mix metaphors). When we know more concrete details of his plan, then we can praise or blast as we determine appropriate.
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JohnW1141
September 1, 2009 3:06 PM in reply to Xantar
Xantar,
I've grown quite cynical over the years.....justifiably so. :-)
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Xantar
September 1, 2009 3:36 PM in reply to JohnW1141
I get the cynicism. I really do. But that doesn't mean we shouldn't wait until we have all the facts and the details before we decide whether we like it or not. If Reid is wimping out, I'll be right there with the rest of you criticizing him, writing letters and calling his office. But until I know that for a fact, I'm going to wait and see.
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Stiggs
September 1, 2009 3:43 PM in reply to Xantar
I think the one thing which the Dems have successfully included in their public option pitch is incomprehensible complexity. The American populace has about a 10 second attention span. And when the Dem position is paradoxically two opposing things (a private public option, for example) then those on the right will claim that the bill will sodomize our sons and outlaw snow shovels. And people will believe them because at least it's simple.
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bluebell
September 1, 2009 5:48 PM in reply to Xantar
He sold out long ago.
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markg8
September 1, 2009 3:05 PM
This sounds like CMS the private company that administers Medicare. No big deal.
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mcc
September 1, 2009 3:07 PM
Reid's ideas are incoherent and appear to be entirely grounded in weird political framing concerns, with no care as to what the policy consequences of these political contortions are-- and of course Reid probably doesn't have the strength in the Senate to get whatever his plan is passed anyway. I'd really be more comfortable if we could find a way to just bypass him.
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Stiggs
September 1, 2009 4:01 PM in reply to mcc
"Reid went on to state that he very much enjoys gay sex, but only with women. When pressed for an explanation, a spokesperson said that the senator enjoys homosexual intercourse with postoperative male to female transexuals and occasionally with preoperative female to male transexuals. Women with strap ons are right out. A later clarifying statement from the senator was more ambiguous but appeared to be reserving judgement on his sexual proclivities until he has an opportunity to discuss the matter with Joe Lieberman and the Republican leadership."
I always feel like we're losing the health care debate because the dems aren't explaining their position. Right up until they start explaining their position. Why can't our party leadership get out of their own way? These people really need to higher a good PR firm and filter all communication through them.
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gharlane
September 2, 2009 2:24 AM in reply to Stiggs
Stiggs, you just won the Internet. ;)
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Stiggs
September 2, 2009 2:39 AM in reply to gharlane
Why thank you. My first act as king of the internet will be to restrict all twitterers to consonants. Largely a symbolic move, it shall impact very few of those using the service.
Maybe we should go the other way and require all twitter updates to be a minimum of 500 words with perfect spelling, punctuation and grammar. Would that be prohibited as cruel and unusual punishment?
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gharlane
September 2, 2009 11:00 PM in reply to Stiggs
M lg, th ntrnt wts yr cmmnd ;)
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Stiggs
September 3, 2009 12:47 AM in reply to gharlane
G frth nd fck wth ths lckng sns f hmr.
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gharlane
September 3, 2009 10:16 PM in reply to Stiggs
s y hv cmmndd, m lg. v Csr, mrtr t sltnt.
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Obama1st
September 1, 2009 3:13 PM
This just adds to issues w/ messaging by the democrats. besides, Medicare admin costs are much lower than the private sector unless he frames it as Medicare type 3rd party arrangement. It would have to be based exactly like Medicare for cost contaniment and benefits otherwise it could become the Trojan Horse. This is just like Reid to be out there "Free Wheeling" it and he has no abilty to drive any legislation thru at this point.
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Walter Mitty
September 1, 2009 3:19 PM
Why is it only the Dems indicating compromises to the press? They're negotiating against themselves.
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Mr. Squeezy
September 1, 2009 10:42 PM in reply to Walter Mitty
yeah very true... the GOP has stopped even attempting to look like they want compromise and are openly announcing they won't vote for any bill no matter what it looks like (which most of the people on here knew long ago) - it was... Kyl? Last week? And Bachmann obviously. The whole lot are openly opposing any sort of reform whatsoever and Harry still feels it's necessary to cave to their demands... ugh. I hate the GOP for it's (lack of) ideas, but I hate the Dems because, save a few (Weiner, Barney Frank), they're a bunch of pussies.
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cmpnwtr
September 1, 2009 3:19 PM
I say give Reid some space, actions in the next two weeks will speak louder than words. Medicare, after all, is a public private partnership.
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The Commenter Formerly Known as NCSteve
September 1, 2009 3:22 PM
You know guys, this--and indeed everything we're trying to do--would be a lot easier if maybe somewhere, some time some Democrats would be willing to say, "okay, it's not the way I would do it (and is therefore imperfect because I, being a Democrat, know everything and everyone else is wrong), but it's close enough for government work so let's get on with it."
Yeah, I know. "To dreeeeeaaaam, the impossible dream . . .!'
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CT Voter
September 1, 2009 3:43 PM in reply to The Commenter Formerly Known as NCSteve
You of all people (I am not a member of any organized political party) should know better, Steve.
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The Commenter Formerly Known as NCSteve
September 1, 2009 9:02 PM in reply to CT Voter
Well, there's trying to talk sense into Republicans is even more futile, so why not give it a whirl with Dems once in a while?
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gharlane
September 2, 2009 11:09 PM in reply to The Commenter Formerly Known as NCSteve
OK, NCSteve, tell you what: Here's my bill. It's very short. Every American citizen must purchase health insurance from a private insurance company. There. Done. End of bill. It's the mandate without the regulations and of course without a public option. Sure it's not perfect -- no cost control measures (except those realized by broadening the risk pool, although no guarantees that those cost controls will be passed along to consumers), no regulations on insurers, no restrictions on denying coverage due to pre-existing conditions, no restrictions on post-claim underwriting or rescission, but hey, you know, we are broadening the risk pool, and that should, theoretically, bring down costs, right?
Maybe we'll throw in a subsidy to help people afford it. And they'll need it, of course. Pretty much a direct infusion of cash, right in the vein, from the taxpayers to Big Insurance.
Call it "Health Care Reform", declare victory and go home.
Close enough for government work. Not perfect, but it's something we can call reform. Certainly the health insurers will call it reform.
Oh, you don't like that bill, you say? Pray tell, why not? After all, we's gotta take what we can get, right? In five or ten or fifteen years we can revisit the issue.
And if you tell me you don't like the bill, that it's unacceptable, that it's not enough -- well, then, your position is really no different than those Ideological Purists among the Democratic Left you so love to mock and vilify. It's just a matter of where you draw the line between acceptable and not.
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johnmccsf
September 1, 2009 3:33 PM
Totally revealing that the feckless progressives' knees jerked last Friday when Reid first floated the idea
Totally explains how it is that Democratic efforts have floundered in the face of bither/tenther/bagger juggernaut
Like herding cats
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USgreentech
September 1, 2009 4:04 PM
This is not that bad of a statement, but what does he mean -- Private in name only? As far as I know they might be pushing for single payer. Harry Reid is making these statements and it's like? Universal Health Care is on the horizon, sooner rather than later.
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The Old Grouch
September 1, 2009 4:25 PM
Is Reid getting senile?
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wvbiker
September 1, 2009 5:22 PM
Xe (formerly Blackwater) could get into the healthcare business. They are already way ahead on death panels.
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dmacgregor
September 1, 2009 8:34 PM
ericf is NOT confusing private insurance with private administration. His point remains valid that any company contracted to be involved in the health care process will demand profit for its involvement. The public option needs to provide a not-for-profit, and therefore affordable alternative to the egregiously for-profit private insurers.
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patmcgrowen
September 1, 2009 11:13 PM
I was wondering if someone could answer something for me. On the campaign trail, I heard Obama say that we should be able to have the same kind of health care that our elected officials have. So I was wondering why the public option couldn't just be an extended version of government employees insurance. Like postal workers and other government employees. I've gone on their website before and it looks like they offer a lot of different options. I think it would be funny to hear all these politicians argue against giving their constituents something they enjoy. I think that would be the great hypocrisy. If this government is of the people, by the people, and for the people, then why can't the people have the same insurance their representative has.
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dmacgregor
September 3, 2009 6:33 AM in reply to patmcgrowen
According to WikiAnswers.com: "Members of Congress are eligible - like all other federal employees - to sign up for one of the "cafeteria" health insurance plans offered all other federal employees." Though this provides more choices, all the choices are for-profit vendors. The public option would add a choice that isn't for-profit, which means it would definitely cost less.
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