What is Public Health Insurance Option?

Legal Definition
The public health insurance option, also known as the public insurance option or the public option, is a proposal to create a government-run health insurance agency which would compete with other private health insurance companies within the United States. The public option is not the same as publicly funded health care, but was proposed as an alternative health insurance plan offered by the government. The public option was initially proposed for the Patient Protection and Affordable Care Act, but was removed after Sen. Joe Lieberman (I-CT) threatened a filibuster.
-- Wikipedia
Legal Definition
A health insurance company that has been put forard by the government as an option to health insurance that is privately owned. Its role would be to drive down the costs associated with private health and sit between universal care and private insurance. Correct at this time.