So President Obama was addressing a town hall and in trying to address claims that a government plan will drive private insurers out of the market he admitted that the government doesn't do things as well as private industry. Specifically he said that UPS and FedEx do a better job than the USPS.
Here is my question. If the government plan isn't going to be subsidized by tax money, as he appears to be claiming here, how is it going to provide health insurance to people who can't afford it now? That is the whole point of this thing isn't it? To provide health insurance to people who can't afford it? The money has to come from somewhere. If not from the people being insured and not from taxes, where is the money going to come from? Surely they aren't going to charge other people astronomically high premiums to subsidize those who can't pay. That would make the government plan a lot more expensive than any private insurance and so destroy it's competitiveness.
There's only one way the government can come up with the money to provide insurance to the 47 million uninsured. They've got to use taxes to subsidize the insurance. There's no other place for the government to get the money. The second the government plan is subsidized by tax dollars there will be no way for private insurers to compete. Private insurers have to make a profit or they will go bankrupt and out of business. The government doesn't have to make a profit because they can just seize the money they need through taxes. Which means the government can seriously undercut private insurers prices driving them out of business.