Public option
The public option is a euphemistic term for part of the proposed government takeover of medicine, which would require individuals and employers to purchase health insurance (or else be fined) and offer a government-controlled insurance plan for them to purchase.
Private insurance companies want a requirement that individuals and employers purchase health insurance, but do not want the government to provide taxpayer-funded health insurance in competition with the private plans.
While a public option is supposedly meant to compete alongside private insurance, many recognize that it could easily bankrupt most private insurance and lead to a "single payer" or government-controlled universal healthcare system. Congressman Barney Frank specifically said, "I think the best way we’re going to get single payer, the only way, is to have a public option and demonstrate the strength of its power."[1] Even President Obama has expressed support for a single payer system, although he has also stated that it might be too abrupt a change for the American people.