Schumer said yesterday that the opt out public option "would have to play by the same rules as the insurance companies, the same rates, the same reserves, the same requirements." This is the so-called "level playing field" public option, as opposed to the strong public option.
What does he mean with "same rates"? Same premiums or same reimbursement rates paid to providers? There's a huge difference between the two. If he meant the former, then what's the point with even having a public option? It would simply be like many states' current insurance pools (ICHIP here in Illinois), which are grossly unaffordable. If he meant the latter as in same reimbursement rates to providers, then it could be reasoned that the public option will have lower overhead and thus be able to offer lower premiums compared to private insurers.
So which one is it?
If it's the former, then this entire public option debate has been a farce.
What makes me worried is that Schumer also said that with the public option, the government will independently negotiate with health care providers, which suggests that when he is talking about "same rates," he is actually thinking "same premiums."