Why is it so bad that the government should provide health insurance for those who can't afford it? The government provides college loans and grants for kids who otherwise could never afford to go. That move certainly didn't drive the private sector out of the student loan business. The government has several agencies that help families get home loans, if they can't afford to get one otherwise. That move certainly didn't drive the private sector out of the mortgage business. There's no evidence that providing a health insurance public option will make the insurance industry unprofitable.