Industry IQ: Sebelius: Fed health insurance plan would compete with private insurers

U.S. Health and Human Services Secretary Kathleen Sebelius maintains that a proposed government health insurance plan backed by President Barack Obama would compete with private insurers rather than lead to a socialized system. The former Kansas governor and insurance commissioner maintains that the Obama plan, designed to help cover the estimated 46 million uninsured Americans, would not dismantle the private healthcare market. The President "supports moving forward and filling the gap, not disrupting the entire market," Sebelius told the House Ways and Means Committee. Republican and private insurers argue that a government-run plan would drive insurance companies out of business. Sebelius said it would inject competition in the market, keep costs low and help cover the uninsured. Sebelius said several states offer public insurance plans to their employees, taking on the underlying risk but contracting with private insurers to operate the plan. Obama has not put forward a specific plan and is leaving it to the Democratic-controlled Congress to write the legislation.