Large American Companies Denigrating Insurance Public Option

Several of the largest companies in the U.S. are resisting Democrats’ plans to include a public option in upcoming health insurance legislation, a potential stumbling block for those who must cater to business constituents. The Business Roundtable, a group made up of the CEOs at such large companies as Verizon, JPMorgan, GE, Wal-Mart and other behemoths have said, unequivocally, that the federal government is a highly inefficient organism that would end up underpaying health care providers. The group fears that in so doing, the government would end up increasing prices for private insurers and for employers.

Said Antonio Perez, CEO of Eastman Kodak, "A public plan would neither manage cost nor encourage innovation. We believe it is the wrong direction for fixing our health care system." John Castellani, the president of the Business Round Table, told reporters at a recent news conference, "The costs for all of us in the system will continue to go up and again put pressure on employers to get out of the health care system."

Meanwhile, President Obama still favors a public option, noting that it will force private insurers to provide services at competitive rates. Senate Majority Leader Harry Reid also has noted that his bill will include a public option that would allow the states to individually opt out of providing public plans. Of all the plans put forth, it may be the U.S. Chamber of Commerce’s plan to create an "Orbitz-like" website for health insurance that is most interesting. There is no talk yet of legislation or a service offering of this nature, but the Chamber, through Bruce Josten, the group’s vice president, has suggested it.