Senate Majority Leader Harry Reid (D-NV) announced that he would bring to the Senate floor a bill that includes a new “public plan,” but with a provision allowing states to “opt-out.” In response to a reporter’s question, Reid said that states would have until 2014 to opt-out.
Setting aside the debate over the merits of a “public option”,- a new government-run health plan to compete against private health plans- there are a number of additional questions about how such a state opt-out would work.
All the questions are good, but this is the key one:
If a state opts out of the public plan, will the citizens of that state still be required to pay the requisite federal taxes that would subsidize the citizens of other states?
Of course we know the answer to that. It is the same as with Federal Highway funds and other power plays. Citizens of every state have the same Federal tax rates. The Federal government may give your state the “option” to ignore certain Federal requirements, but that means that the money your citizens paid in go to help other states. Some option, eh?
You should be insulted that Senator Reid expects you to think the Opt Out Plan means anything.