The health insurance industry has some lingering doubts about President-elect Barack Obama's health care plan. Even though they have supported a plan that will require them to accept all applicants without regard to pre-existing conditions, there are still concerns. The National Health Insurance Exchange is giving them issue.
In this Exchange program, Americans would have a choice between a private plan and a government-sponsored plan. The idea behind the Exchange is that you can combine market forces with government intervention when it comes to reform. According to incoming Health and Human Services Secretary, Tom Daschle, the government plan would be modeled after Medicare, reported The New York Times.
There are arguments for and against the Medicare-like plan. The insurance industry argues that the plan will underpay doctors and medical organizations for their services rendered, which would cause the private providers to raise their rates. They say that the losses they incur under the government plans must recouped. Supporters of the plan state that the competition is likely to drive down already inflated rates. The question to be asked is what is an appropriate rate for a private doctor or hospital to charge for a service, when compared to a similar government charge?
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.
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. - 16459
In this Exchange program, Americans would have a choice between a private plan and a government-sponsored plan. The idea behind the Exchange is that you can combine market forces with government intervention when it comes to reform. According to incoming Health and Human Services Secretary, Tom Daschle, the government plan would be modeled after Medicare, reported The New York Times.
There are arguments for and against the Medicare-like plan. The insurance industry argues that the plan will underpay doctors and medical organizations for their services rendered, which would cause the private providers to raise their rates. They say that the losses they incur under the government plans must recouped. Supporters of the plan state that the competition is likely to drive down already inflated rates. The question to be asked is what is an appropriate rate for a private doctor or hospital to charge for a service, when compared to a similar government charge?
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.
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. - 16459
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