Deregulate the limits on interstate insurance purchases and the multiple government mandates that restrict the kinds of insurance people can buy. That's step one. Oddly, the Democrats aren't even looking at this.

I agree with you on this. But the GOP leadership is opposed to this as well even though there may be a smokescreen bill or two out there from GOP lawmakers.

If you read the House Bill you might have noted that the only private insurance companies permitted to take on new customers will be part of an "exchange" that is heavily controlled by the government (with even more mandates than there are now).

read my comment on your last paragraph.

Again, I refer you to the many Democratic leaders who have been quite open about the "public option" being just a step toward total government control, and they will do whatever it takes to make sure the private options can't compete effectively.

The only way to get the single payer people on board is to tell them that. It need not be the case. I actually believe private insurance will continue to exist just fine...

As far as things like UPS and private schools, both operate under heavy government restrictions on what they can do and how they can do it.

You just made my point. Despite the "heavy government restrictions" they are doing just fine profit wise. (I'll enjoy watching the Fed Ex over the next 4 weeks to see who wins their $10m prize.) Private health insurance companies will also find their profitable niches.