public option
Public option generally refers to a policy approach in which the government offers a publicly administered program or service that individuals may choose as an alternative to privately provided options.
In the context of health care, a public option typically means a government-run health insurance plan that individuals can choose instead of purchasing coverage solely from private insurers. Proposals for a health care public option are often discussed to expand coverage, increase competition in insurance markets, or reduce costs, while still allowing private insurance plans to operate alongside the public program. Public options can differ by who is eligible to enroll, how the program is funded, and how it is administered, depending on how the program is structured by law.
[Last reviewed in February of 2026 by the Wex Definitions Team]
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