I think the better way is to have tort reform, increased legislation to keep the health industry from making health insurance unaffordable (making caps...gov't subsides for lower income, remove inane policies like 'pre-existing conditions', etc)...however having said that just looking at the Banking industry (credit card companies, banks, etc) ...it's pretty clear they'll just find a loop hole to screw you so they can keep high profit margins.
If you don't have a public option to keep the private industry honest, it's clear where we are in our history (on the extreme side of capitalism), they'll just increase rates somewhere else to make up for the loss in profits.
And not to go completely off-topic...but why isn't obesity/cardiovascular disease being talked about at all in this debate of health care? It's pretty clear the reason people can't afford health care is because of America's unhealthy habits....which is to say making health insurance more affordable isn't just going to solve the problem alone (ie. gov't run health care would make health more of an integral part of American society).
Summary:
In a perfect world, reform of the current private health care industry is preferred.
However, our world is not perfect, so at the very least a public option needs to exist.
My belief is that a public option will lead to a one-payer system eventually...and is probably for the best long-term for America...because let's face it, we're not going to stop eating bacon burgers and buying the biggest big screen tvs we can afford.

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