Competition is the new buzzword

I've lost count of the number of times I've heard liberal politicians trying to appeal to our inner capitalists by claiming the public option will "provide competition" in the health care industry. Really? There's something like 1300 private insurers spread across the country. If every state had laws forbidding an out-of-state insurer from selling insurance in-state, that still is an average of 26 insurance providers per state. That's a pretty competitive environment.

But wait a minute.

Seriously, wait a minute, I'll be right back.

Intermission.

OK, I'm back, I needed a refill. Now here's the problem with the notion of the public option competing with private insurers: Nobody said the competition would be fair. Since our federal government wants to roll this plan out to us, how does that mesh with state laws governing insurers having to operate within a state in order to sell insurance? You don't suppose the federal government would have an unfair advantage? I mean, another unfair advantage. Consider:

• The federal government does not have to make a profit.
• The federal government can operate at a loss.
• The federal government does not have to pay corporate business taxes.
• The federal government has no incentive to do more with less.
• The federal government is not subject to state laws by virtue of federal mandate.

Over time, that public option will become the only option, since Uncle Sam always wins when he doesn't play under the same restrictions.