An AP story that reveals why the AP fell from grace

Here, in four paragraphs, is a distilled sample of the explanation for the AP's fall from its lofty status as the world's preeminent news agency:

WASHINGTON (AP) - What's all the fuss about? After all the noise over Democrats' push for a government insurance plan to compete with private carriers, coverage numbers are finally in: Two percent.

That's the estimated share of Americans younger than 65 who'd sign up for the public option plan under the health care bill that Speaker Nancy Pelosi, D-Calif., is steering toward House approval.

The underwhelming statistic is raising questions about whether the government plan will be the iron-fisted competitor that private insurers warn will shut them down or a niche operator that becomes a haven for patients with health insurance horror stories.

Some experts are wondering if lawmakers have wasted too much time arguing about the public plan, giving short shrift to basics such as ensuring that new coverage will be affordable.

The number of people who would be covered initially by a puublic option has nothing to do with opposition to it.

Those who are opposed to a public option see it as a stalking horse for total government control of health care. A public option plan wold have no need to earn a profit. In fact, government could subsidize a public option, allowing it to undercut competitors and drive them out of business.

A public option that initially covers just 2 percent of Americans could eventually  cover 100 percen. At that point, total government control will have been effected.

Whether the AP would notice, or not, remains to be determined.

George Will: Media ginning up comeback for public option in health care reform

George Will on Sunday accused the media of manufacturing the return of government mandated healthcare to the current reform debate.

Discussing the subject on the recent installment of ABC's "This Week," Will said it was highly unlikely Democrats actually have the votes for what they call a "public option," but the media are assisting them in "cleverly and skillfully manufacturing a sense of inevitability that they hope will be self-fulfilling."

(snip)

GEORGE WILL, ABC: Arguably to a collaborative media. That is although they cannot identify a single Republican vote as Al [Hunt] demonstrated in his interview with Olympia Snowe, the Democratic leaders have said, "We've got the votes." Now that means they're gonna get the votes of Evan Bayh of Indiana, Ben Nelson of Florida, of Sen. Nelson of Nebraska, which is to say they're not going to lose a single, so-called moderate Democrat. I think there is, they're cleverly and skillfully manufacturing a sense of inevitability that they hope will be self-fulfilling. I'm still dubious.

Heritage: advocates still mislead on Obamacare

The Heritage Foundation fact-checks Obamacare:

■Taxpayer-funded benefits for illegal immigrants: The House bill, as currently structured, does not offer clear guidelines to ensure that illegal immigrants cannot access taxpayer-funded health care benefits. An amendment to safeguard so only U.S. citizens could access federal health care benefits failed on a straight party-line vote.

■Government takeover of health care system: Whether it’s a public health insurance plan, government-run cartel (which is being dubbed a “co-op”), individual mandate or employer mandate, the provisions in the health bills being pushed by the Obama administration call for more government regulation and intrusion in the American health care system. Even the mainstream media is calling President Obama to task for his own “misinformation” — that if you like your health insurance you can keep it if a public plan is introduced in the private insurance market. The Lewin Group found an estimated 56 percent of Americans with employer-based coverage would lose their current insurance under the House bill.

■Funding abortions with taxpayer dollars: This concern has been raised in all three House committees and the Senate HELP committee. Based on the passage of an amendment to require at least one insurance plan to cover abortion each geographical region and the failure of several amendments to prohibit federal funds for abortion services, taxpayers could end up financing abortion.

Obama retreats on public option for health insurance

Why do private insurers support Obamacare?

From: Reason

"As for the insurance companies, they worry—legitimately—that a government insurance company—the so-called public option—would drive them out of business. This isn't alarmism. It's economics. The public option would have no bottom line to worry about and therefore could engage in "predatory pricing" against the private insurers.

But despite these differences, the biggest companies in these two industries are on board with "reform."

It illustrates economist Steven Horwitz's First Law of Political Economy: "No one hates capitalism more than capitalists." In this case, big business wants to shape—and profit from—what inevitably will be an interventionist health-care reform. Can you think of the last time a major business supported a truly free market in anything?"