Among the Problems with State-run Health Care ...

... is proper pricing, a factor to be considered in establishing a "public option" government-run insurance program to compete with private plans. One way to look at how governments manage their plans is to consider what they think is appropriate for their own employees.

Consider, for example, health insurance for state employees in Washington. Adam Wilson reports in the Olympian that state health plans may get a big hike.

The Public Employees Benefits Board is considering the increase to make up for rising costs and flat-lined funding. The most popular offering, the Uniform Medical Plan, will not see the steepest out-of-pocket increases. The share of costs paid by members of that plan will rise from 10 percent to 15 percent, and the out-of-pocket maximum will increase from $3,000 a year for a family to $4,000.

Wilson has more details, the state offers several plans, and for the most part the increases seem reasonable given state budget pressures. That's particularly so given the long history of very generous state benefit programs. After the increases, most state workers will continue to enjoy benefits unavailable to most private sector employees.

Still, State Rep. Brendan Williams issued a statement taking the PEBB to task. (The link is to another post by Wilson.)

"If we’re to trust a government role in health care reform, government should set a high standard,” stated Williams.

And that's part of the problem. The "high standard" amounts to highly-subsidized high-cost benefits. The Congressional emphasis on "cost containment" is inconsistent with government-run programs.

Williams writes favorably of our neighbors to the South.

Williams pointed out that the Oregon Legislature, which has increased taxes in its ongoing legislative session, will continue to cover 100% of state employees’ health care premium costs.

The Olympian editorial board appears to understand the problem, at least in the larger context.