Top Democrats Jump-Start Push to Offer a Health Care 'Public Option,' a Biden Promise

By Julie Tsirkin and Sahil Kapur, NBC News

27 May 21

Rep. Frank Pallone and Sen. Patty Murray are trying to craft a government-provided insurance option to compete with private plans and extend coverage.

wo Democratic committee chairs overseeing health care policy are seeking to jump-start a legislative push to craft a "public option" to compete with private insurers.

House Energy and Commerce Chair Frank Pallone, D-N.J., and Senate Health, Education, Labor and Pensions Chair Patty Murray, D-Wash., wrote a letter to interested parties Wednesday seeking their input by July 31 on how to structure a government-provided plan.

"We believe bold steps are necessary in order to achieve universal coverage and lower health care costs," they wrote. "Health care affordability remains a challenge for many American families despite the fact that the United States spends more on health care than any other country."

Pallone and Murray touted the Affordable Care Act's successes at extending coverage but noted that "tens of millions of Americans still remain uninsured or underinsured."

A "public option" was one of President Joe Biden's campaign promises, billed as a moderate alternative to rival Bernie Sanders' plan to scrap private coverage and put all Americans in Medicare. But Biden has not included the policy in his economic rescue and stimulus proposals so far, instead seeking to infuse cash in the ACA exchanges and invest in Covid-19 vaccines.

But the Democrats are signaling it is still a priority, and aim to introduce a bill by the end of this year, a Murray aide said.

It will be a daunting task for Democrats, who have paper-thin margins in Congress and not much hope of winning Republican support. They are likely to face an assault from health industry groups, including insurers who won't want to compete with the government, as well as doctors and hospitals who would complain about likely reductions in reimbursement rates.