Here's How Inslee's Health Insurance 'Public Option' Would Work

SEATTLE, WA - Gov. Jay Inslee and Democratic state lawmakers on Tuesday proposed a so-called public option - a government health insurance plan that would be available on the Washington Health Benefit Exchange.

The state, however, is not offering free healthcare.

The plan, called Cascade Care, would require private insurers to offer a "state-defined" health insurance plan on the exchange. Buyers would still pay premiums, co-pays, deductibles, and co-insurance just like with private plans. There would be subsidies available, however, to low-income buyers.

Inslee and Democratic lawmakers want to create a public option so that state residents have access to a single plan that's available in every county. Right now, private insurers offer a wide variety of plans at different prices that vary by county. Some counties, like King and Pierce, have several plan options. But in 14 counties, insurance customers only have the option of buying one type of plan.

"It will improve affordability through standardized plan designs that are easier to understand and have lower out-of-pocket costs for consumers. Reimbursement rates would be consistent with Medicare rates for providers that help ensure fair payments for providers and reduces costs for people," Inslee said in a statement published on the website Medium.

The state health exchange is where residents can go to buy health insurance if they can't get it through work. The federal government subsidizes these plans, depending on how much a buyer earns.

If passed, the Cascade Care legislation would go into effect in 2021. It will cost about $500,000 to set up, according to the governor's office.

Image courtesy Gov. Jay Inslee