Competion With Insurance Industry

The public option will create competition has been said over and over again, and Kathleen Sebelius has now stated that there needs to be competition with the insurance industry. But shouldn't the competition be within the industry? And doesn't it already exist?

Blue Cross has to Compete with Aetna, Cigna, Humana, UHC, etc in order to get market share so we do have competition within the industry, but the government wants competition from outside the industry. Say what?

Aren't they saying that competition within any industry is not enough to tempter the greed of those big bad corporations so a government option is needed "to keep them honest". This is exactly what Obama has said, that a government option is needed to keep the insurance companies honest. So he is in effect stating that insurance companies are dishonest.

How about we apply that same logic to government monopolies on ..... let's say......taxes. How about we create some competition within taxation and the application thereof. Shouldn't we have somebody other than the IRS collecting the money, just to keep them honest you know. Or how about competition with Congress for spending it? Just some good old fashioned competition to keep them honest. The American people could then decide which policies to purchase, those of Congress or those of their competition.

If we need options from outside of a specified industry to keep them honest -- because all companies within an industry meet at a summit to figure out how they can gang up against the consumer and rob them blind don't you know -- then shouldn't that apply to government monopolies as well?