Details on Senate's new public insurance proposal

Some details of a provision, to be included in the Senate bill, for the government to sell health care insurance in competition with the private market:

• Probably beginning in 2013, insurance purchasing "exchanges" would be open to people buying coverage on their own as well as small businesses. They could choose from private insurance plans, or from the government plan that probably would be cheaper because it wouldn't need to turn a profit.

• This public plan would be in effect nationwide, but Reid's proposal would allow states the opportunity, starting in 2014, to "opt out" of it.

• There are a number of proposals under consideration for how states could opt out. Sen. Charles Schumer, D-N.Y., who came up with the idea in the first place, proposed requiring states to pass laws in order to exit the public plan.

• The public plan would get startup money from the government, but that would be paid back over time and the plan would be paid for by premiums from participants. Rates paid to providers would be negotiated by the government.
  
  Copyright 2009 The Associated Press.