THE BURNED OVER DISTRICT

There is actual, factual news regarding the cost of health care in this least civilized of industrial nations. An honest review of insurance costs, with and without a public option, says that you can expect to save lots and lots of money with a public option.

A nationwide health insurance exchange that includes a Medicare-like government option could save $1.8 trillion more than if only private plans are offered, a prominent private U.S. health policy group said on Wednesday.

Federal spending on health-related costs would still rise from 2010 to 2020, but they would be less with a plan that pays doctors and hospital rates similar to the Medicare program for the elderly and disabled, according to a report by the Commonwealth Fund.

The New York-based health policy research group compared possible savings a health insurance exchange could bring under three different scenarios. One would include a Medicare-like plan along with private insurance. Another would instead offer a government-run plan with rates somewhat higher than Medicare. The final one would be private insurance with no government plan at all.

Such an exchange would offer a central point for consumers to shop for and compare health plans.

An exchange that instead offered a plan with rates slightly higher than Medicare but below current private plan rates would save nearly $800 billion over one with only private options, according to the Commonwealth Fund's analysis.

And, lo and behold, they found that a public option plan would do much to keep the insurance companies relatively honest. The numbers they put together look much better than the half baked CBO report.

Overall, an exchange with a Medicare-like plan will save nearly $3 trillion through 2020, saving consumers up to $2,200 per household, Commonwealth found. About $2 trillion of that would come after about five to six years, it said.

In comparison, an exchange including a government plan with higher rates would save $1.97 trillion and a private plan-only exchange would save almost $1.2 trillion. Both options would save a household $1,600.

Call your Senator, now.