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Hillary Clinton and President Barack Obama have both come out in favor of a public option, but as long as Republicans control Congress the odds of its adoption are remote. Regardless, what would the economics of it be? (Photo: iStock)

One of the big debates in health care right now is whether to create a public option for health insurance. Most observers of Obamacare agree that the big problem is private insurers pulling out of health-care exchanges. That leaves smaller states with only one or two insurers participating, which kills competition in insurance markets and raises costs.

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