The Public Plan Would Actually Have Premiums 4% Higher than Private Plans?

We have been told over and over that the public plan would "reduce costs" but this report says that that is just bunk.

We estimate that the public plan will have costs that were 5% below the average level for private plans but that the public plan premiums would be roughly 4% higher than private as a result of the antiselection of enrollees.

In other words there will just not be enough people taking the public plan to make low premiums financially viable. Plus, the cutting of the so-called "overhead and profit motive" from private plans would result in just a 5% cost savings.

Also I would rather stick with the private plan if I get to pay 4% less in premiums. Suddenly the public option looks much less fearsome to private insurance as some might think. I think many Americans will look at the health exchange see that the government plan is too expensive and just choose Blue-Cross/Blue-Shield or something.