During the debate over Obamacare, many progressives argued for the creation of a government-run insurer to compete with private plans in the exchanges. The House’s version of what became Obamacare included the public option. The Senate’s, which eventually prevailed, did not. A government-run insurer would have the capacity to absorb essentially limitless losses. So it could underprice private insurers and eventually drive them out of the market. The public option would soon be the only option.
