Health care overhaul would include not-for-profit option, give insurance companies competition

Not-for-profit public option part of health plan

WASHINGTON — President Barack Obama says a not-for-profit public option needs to be available as part of any health care overhaul. He says it would keep insurance companies honest.

Obama told Congress Wednesday night that the public option would be part of an insurance exchange for last-resort coverage. Obama said the Congressional Budget Office estimates that less than 5 percent of Americans would sign up for the option.

Obama said the public option would not be subsidized by taxpayers, but would be self-sufficient and rely on the premiums it collects.

The president said public option would pressure private insurers to keep policies affordable and treat customers better, much like public colleges and universities provide additional choice and competition to students.