The House healthcare reform bill contains a clause that I find hard to believe. It reads as follows:
NO BAILOUTS.—In no case shall the public health insurance option receive any Federal funds for purposes of insolvency in any manner similar to the manner in which entities receive Federal funding under the Troubled Assets Relief Program of the Secretary of the Treasury.
In other words, the government isn’t going to receive funds from the government to bail out the government. Now let me tell you what I think will really happen if the government-run option gets into financial trouble. The government will bail it out.