What would happen to health insurance companies if government take over the health insurance system?

Question

Correct me if I'm wrong, but I heard that Obama is trying to push a public health system that will allow everybody to have health insurance no matter what pre existing conditions he or she may have.
If this is reached, what would happen to insurance carriers like Blue Cross, Blue Shield? Will we need these companies and health insurance agents?

Answer 1

Insurance companies are never gonna die as they have major contribution to economy of a country.

Insurance companies many times invest their money into government projects. So whatever policies comes, I don't think US government would ever collapse its current insurance industry.

Answer 2

They would definitely shrink, but they would still be around. Look at Medicare, they have supplement polices which the individual has to pay. If you think the government is going to pay for Heart surgery, Cancer treatment, you're in for a rude awakening.
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Hope this will be helpful.
BR