Of course it is. We’re picking up the tab for it twice:
There is a rich literature testifying to this phenomenon. A study last December by Milliman Inc., an independent consulting firm, commissioned by America’s Health Insurance Plans, found that underpayment by Medicare and Medicaid accounted for nearly an 11% increase in the health care costs of private plans. This means that on average a privately insured family is forced to pick up about $1,800 extra every year of the government’s slack. Private plans, all in all, are subsidizing government programs to the tune of $90 billion annually.
Kinda minimizes that claim about the percentage of dollars in Medicare that goes to care. Of course, Medicare doesn’t do R&D; deal with insurance companies; pay compliance costs; etc.
Meanwhile, free-marketers should support the public option? Only if you don’t know what a free-marketer is.