IBDeditorials has located a passage in HR3200 (Obamacare) which will do away with private medical insurance.
The passage is here and says "Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day of Y1," that is, whenever this legislation becomes law.
As IBD explains it, "So we can all keep our coverage, just as promised — with, of course, exceptions: Those who currently have private individual coverage won't be able to change it. Nor will those who leave a company to work for themselves be free to buy individual plans from private carriers." No new private policies will be written after the public option becomes law.
Read their editorial here.