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Government-Run Public Plan Option
When crafting comprehensive health reform legislation, Congress needs to avoid creating a government-run public health plan option to be offered as an alternative to or in competition with private-market health plan offerings. A government-run public plan could never compete fairly with the private market, nor would it be financially feasible in the long-run. NAHU believes that a far better use of federal efforts and monies would be helping lower income Americans afford the cost of private coverage.Resources
NAHU Issue Summary on a Government-Run Public Plan: Our association firmly believes that when crafting comprehensive health reform legislation, Congress needs to avoid creating a government-run public health plan option to be offered as an alternative to, or in competition with, private market health plan offerings.Talking Points for Agents and Brokers Raising Concerns About a Government-Run Public Plan
Why A Government-Run Public Plan is Misguided NAHU offers an overview of why it is ill-advised to create a new government-run public plan as part of comprehensive health reform. Lewin Group Study on the Cost and Coverage Impact of A Government-Run Public Plan In April 2009, the Lewin Group released a study on the cost and coverage impact of various government-run public plan options which indicates that up to 105 million Americans could lose their private coverage. Cost-Shifting Data In December 2008, the actuarial firm Milliman released a study indicating that already low Medicare and Medicaid reimbursements to hospitals and physicians lead to significantly higher health insurance costs for consumers and employers. Annual health care spending for an average family of four is $1,788 higher than it would be if Medicare, Medicaid and private employers paid hospitals and physicians similar rates, with total provider reimbursement unchanged. This cost-shifting, or hidden tax, would only increase for private payers under a government run public plan. Why Doctors, Hospitals and Patients Lose Under a Government-run Public Plan A Government Plan Operating on a Level Playing Field? Advocates of creating a government health plan to compete with private plans under health reform have argued it is possible to structure a government plan to compete on a level playing field with private health plans. Many are concerned it is not possible to create a level playing field government competitor. NAHU has produced this informational chart.
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