Reid Includes Opt-out Public Option

Senator Harry Reid (D-NV) announced yesterday that a public option with a state-by-state opt-out will be included in the health care reform package. Ezra Klein comments on the content of the opt-out feature in his Washington Post blog.

In many ways, this is a fundamentally conservative approach to a liberal policy experiment. It's only offered to individuals eligible for the insurance exchanges, which is a small minority of the population. The majority of Americans who rely on employer-based insurance would not be allowed to choose the exchanges. From there, it is only one of many options on the exchange, and only in states that choose to have it. In other words, it has been designed to preserve the status quo and be decided on the state level. Philosophically, these are major compromises liberals have made on this plan. They should get credit for that.

He also notes the political strategy behind Reid's proposal.

This accomplishes two things for Reid. First, as Frates's unnamed lobbyist points out, he can lose this vote but credibly claim that he went to bat for a pretty good compromise on the public option. Second, it creates consequences for those who want to vote against the public option. Rather than killing the proposal in a back room, moderates who won't vote for cloture will actually have to vote against cloture. That makes them a target in their next election, and ensures a lot of harassment from the left. Reid is, in other words, making it harder -- not impossible, but harder -- for them to oppose the public option. Procedurally, it's a big win for public option advocates.