Even though the health insurance industry has backed a plan which will require them to accept all applicants regardless of pre-existing health conditions, they still have their doubts about the incoming presidents health reform proposal. One part of President-elect Barack Obamas proposal isnt sitting so well with health insurance companies " the National Health Insurance Exchange.
The National Health Insurance Exchange would give Americans a choice between a private plan and a government sponsored plan. The premise is that by combining government sources and open market options, the insured will have more resources with which to tailor a custom plan. The New York Times reports Tom Daschle, the incoming HHS Secretary, as stating that the government's plan is designed around the Medicare model.
The Medicare-like plan would compete with plans provided by private companies who participate in the Exchange. This would, proponents argue, enable more competition in the market and drive down rates. Not necessarily true, says the insurance industry. Their argument is that the Exchange wont do anything to make health insurance and health care more affordable " in fact, the opposite. The health insurance industry points out that the Medicare-modeled plan would likely underpay doctors and hospitals for their services. This would cause providers to increase their prices for private plans to balance out their loss from the government plans.
In spite of differences, it seems that President-elect Obama is keeping his word regarding bringing all parties to the table. Karen Ignagni, president of America's Health Insuranc Plans recently stated that, "A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four."
Stephanie Cutter, spokesperson for Obama's White House transition, recently said, "These are listening sessions. We are trying to find people who share Obama's goal of health care reform, even if they disagree on the specifics." Thousands of meetings have already been scheduled with health care reform as the subject. All parties are being welcomed. - 15275
The National Health Insurance Exchange would give Americans a choice between a private plan and a government sponsored plan. The premise is that by combining government sources and open market options, the insured will have more resources with which to tailor a custom plan. The New York Times reports Tom Daschle, the incoming HHS Secretary, as stating that the government's plan is designed around the Medicare model.
The Medicare-like plan would compete with plans provided by private companies who participate in the Exchange. This would, proponents argue, enable more competition in the market and drive down rates. Not necessarily true, says the insurance industry. Their argument is that the Exchange wont do anything to make health insurance and health care more affordable " in fact, the opposite. The health insurance industry points out that the Medicare-modeled plan would likely underpay doctors and hospitals for their services. This would cause providers to increase their prices for private plans to balance out their loss from the government plans.
In spite of differences, it seems that President-elect Obama is keeping his word regarding bringing all parties to the table. Karen Ignagni, president of America's Health Insuranc Plans recently stated that, "A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four."
Stephanie Cutter, spokesperson for Obama's White House transition, recently said, "These are listening sessions. We are trying to find people who share Obama's goal of health care reform, even if they disagree on the specifics." Thousands of meetings have already been scheduled with health care reform as the subject. All parties are being welcomed. - 15275
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