by Ethan Kalvin
When President-elect Barack Obama presented his National health care plan, red flags went up from a myriad of sources, as was expected in light of such a transformational program. The health insurance industry still has some concerns, even though it has agreed to cover all applicants without regard to pre-existing conditions. It is the National Health Insurance Exchange that still is a significant issue with them.
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.
Karen Ignagni, president of America’s Health Insurance Plans, recently stated “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.” President-elect Obama, in spite of differences, seems to be keeping his word regarding giving all parties an equal seat at the negotiating table. This in itself is commendable.
All parties are being welcomed to the thousands of meetings which have already been scheduled to discuss the issue of health care reform. Obama’s team has noted that the meetings are designed to bring all parties to the table, regardless of whether or not they agree, to participate in an open forum on the subject.
About the Author:
If you find yourself asking questions about your current
health insurance predicament, not knowing where to turn for answers, then visit the web’s best known and most comprehensive source of advice at www.GoHealthInsurance.com to learn about various
health insurance plans.
