I'm not sure it's totally a smokescreen. Yes, many of the claims are untrue. But insurance companies are public companies, meaning that they have to yield a decent rate of return on capital, and some of that capital comes from the liquidity market with a cost. The government will have both a lower cost of capital, and a lower required rate of return, meaning there is some unevenness of the playing field. (On the other hand, the government is also hobbled by several things which will level that playing field again, but we're not allowed to talk about those ;)

My biggest hope (and feel free to talk to docorion for a long dissertation on the topic) is that a government plan could change the game by changing the compensation structure for healthcare providers. Not currently likely, but a government plan now would make it easier to make those changes in a few years....