No Insurance=Cheaper Health Care
Health care is not the same as auto care. Without health insurance, hospitals would have to compete against each other, thus lowering the costs of procedures.
Auto insurance is competitive. Homeowners' insurance is competitive. Life insurance is competitive.
I believe that the public option is the right way to deal with the basic needs of insurance, including "pre-existing conditions" like gout, asthma, diabetes (a huge medical cost), and lupus -- and catastrophic circumstances, but excluding occupational risks (should be passed onto the consumer) and bad habits (alcohol and cancerweed). If you smoke or drink you should reasonably have to pay more because such behavior is a choice.
Social security did not kill the life-insurance industry, and Medicare did not kill the medical insurance industry. Maybe the public option must have a high deductible but cover preventive care.
Health insurance companies could sell supplemental, "luxury" coverage, including coverage for risky occupations (employers should pay more for high-risk occupations such as coal mining) and for low-deductible supplements.