How would it not?  It introduces another option for consumers to buy their insurance and it provides another insurer to negotiate prices with the medical providers.

First of all, according to provisions in the bill, the government plan is not subject to the same federal and state regulations with which its private sector counterparts must comply.  The "public option" plans also would not have to pay the same federal and state taxes which most private insurers must pay.  Furthermore, it would not be subject to federal or state antitrust laws.

The bill also gives the government plan the power to unilaterally establish reimbursement rates for doctors and hospitals.  And the government plan will be able to offer its plans below cost, with taxpayers making up the difference.  No private insurer can do that and stay in business.  You call that fair competition?  Sort of like having a football game where the quarterback is also one of the referees.

Regards,
Scott Perry