if public schools haven't put private schools out of business why is it that....

[YewNork]

a public health insurance option would put private insurers out of business?

[Thothmes]

1. Private schools do not compete with public schools for students

Private schools exist to provide an education targeted to specific populations of students. They provide additional services that are not available in the public system. Parents that send their children to those schools find some value in those extra programs. Many have a religious component that is not legal in the public school system. Catholic parochial schools, Jewish Yashivas, Christian academies all have strong religious programs that would not be tolerated in public schools. Military academies provide a much more disciplined and structured educational environment than is acceptable in public schools. And finally, a lot of well to do people are willing to send their children to very exclusive private schools in the belief that they provide a better education than the public schools do.

[YewNork]

2. Public and private schools both provide the same type of product....

but as you stated, private schools provide additional services.

And under the proposed legislation, private insurance companies will be able to offer additional services than are offered by the public option, outside of the insurance exchange.

Everyone assumes that all people will gravitate to the public option simply because it may be the cheapest.

But just like people choose and pay for private schools because they offer more than the public schools do,
there's nothing to say that people won't choose and pay more to go with a private insurer if they offer a better product
than the public option offers.

[Shagbark Hickory]

3. Private schools offer peace of mind to parents that think:

that their kids will be safer, get a better education or have a better shot of getting into college.
Private schools are selling THAT.

Similar to how UPS charges $26 to ship a 1 lb 2nd day air package from east coast to west coast and with their 2 day service but the post office flat rate priority envelope is $5.50 and it gets there in the same amount of time. People still value the peace of mind and think that the postal service is not as reliable.

[Thothmes]

4. BS

I did not care whether my kid was "safer", or whether he had a better shot as some college. What I carred about was that the parochial school system would provide him with the best education that was available in our geographical area. Not being catholic, I did not even care that they may turn him into a raving papist, as long as he was a literate one. They did an excellent job in turning him into a very well educated young man. I did this not because I have any dislike about public school systems in general, rather the one in our area did not meet the standardss that I expected. That was the only thing that counted.

[Shagbark Hickory]

5. For me it was different. The public schools where I grew up were generally viewed as dangerous and..

parents sent their kids to non-religious private schools.

Their fears may not have been well founded. I'm just saying that was the fear.
I live somewhere far away from where I grew up and while the schools are not perceived as dangerous, people still think the private option will be better quality. That may or may not be true either. I'm just saying that as long as there is this stigma that public-anything is not as good, there will be a market for a private option. Even if the private option really isn't better or has no benefit.