Paul Krugman notes the good news out of the White House about health care reform. He's still worried that the industry groups will use the good will they created with this move to block a public plan in health care reform.
That was my reaction to the news also.
But there's another possibility. The public plan could be pegged to the progress in lowering health care costs generally set out in the industry agreements, creating a kind of all payer scenario.
Instead of the public plan along with Medicare bargaining independently to lower rates, the progress in rates payments could be what the public plan offers, eliminating what private insurance terms "unfair competition."
This could put pressure on blue dog Democrats to go along with a modified public plan. Of course they will try to argue that with this agreement, which is totally unenforceable, we should take a "wait and see" stance.
Blue Dogs and Republicans will do anything to block genuine progress in harnessing private power for the public good.
It's not the way I would go but I don't have any idea about how difficult this all is.
When LBJ created Medicare, it would have been so, so, simpler to move the whole nation to a public plan instead of plunging further into the war in Vietnam.
Oh well...we'll see.