A Good Question.

The folks at Reason are wondering: Why Won't the Public Option Die? Simple. That is THE crux of The Left/Mainstream Media push for "reform." Without it, the road to a government run, single-payer health care system is shut.

But with a "public option," the government can make it financially advantageous for employers and individuals to pay a "fine" rather than pay a private health care premium. This will dump millions of folks into the government system, where the "public option" will always be the cheapest option. Once the "public option" reaches a critical mass, say 50% of the non-Medicare population, the next argument will be: "Hey, folks like the public system - wouldn't it be more fair and cost-effective if we only had one system?..." QED - single-payer.

UPDATE: Reason notes that The Left/Mainstream Media are "using free-market rhetoric to expand government power". The entire point of the "public option" for Team Hopenchange is not to increase competition and choice, but to eliminate both as much as possible. With a "public option," the government can arbitrarily set price points which private insurers can't match, as government doesn't have to worry about those pesky free-market things like operational efficiency or breaking even. The government can therefore tip the playing field, making it financially advantageous for employers and individuals to go the "public option" route. Further, since they will not be able to compete with a government-subsidized arrangement that charges less than the service costs, private insurers will be forced out of the business. With the "public option", The Left/Mainstream Media can achieve their single-payer nirvana - without ever having to propose it.