Health care public option

In the context of health care reform discussions in the United States, the public option would be a medical payment service or insurance offered directly by government, rather than by insurance companies or not-for-profit health care cooperatives. Depending on the discussion, it might be a single-payer service such as the Canadian or British model, but more commonly is assumed to be an alternative to private services.

There already are several public payment services, including Medicare, but they are available only to certain populations. The Federal Employees Health Benefits Program is not a public option program, but a cooperative.

Politically, public option is anathema to economic conservatives, but a strong requirement of many social liberals.

The Baucus bill does not contain it. Barack Obama has indicated he would prefer to have a multi-payer public option but will compromise.