Public Health Plan Could Save Money: Policy Group

[Hissyspit]

Source: Reuters

Public health plan could save money faster: policy group

By Susan Heavey – 2 hrs 24 mins ago
WASHINGTON (Reuters) – A nationwide health insurance exchange that includes a Medicare-like government option could save $1.8 trillion more than if only private plans are offered, a prominent private U.S. health policy group said on Wednesday.

Federal spending on health-related costs would still rise from 2010 to 2020, but they would be less with a plan that pays doctors and hospital rates similar to the Medicare program for the elderly and disabled, according to a report by the Commonwealth Fund.

The New York-based health policy research group compared possible savings a health insurance exchange could bring under three different scenarios. One would include a Medicare-like plan along with private insurance. Another would instead offer a government-run plan with rates somewhat higher than Medicare. The final one would be private insurance with no government plan at all. Such an exchange would offer a central point for consumers to shop for and compare health plans.

An exchange that instead offered a plan with rates slightly higher than Medicare but below current private plan rates would save nearly $800 billion over one with only private options, according to the Commonwealth Fund's analysis. "Offering a public plan choice and the design of this choice makes a difference in the pace of change," said Cathy Schoen, the group's senior vice president.

Read more: http://news.yahoo.com/s/nm/20090624/us_nm/us_insurance_options

[annabanana]

1. Since the primary concern for the administration (stated thus far)

is to bring down the costs, it seems that the public option is necessary.

[ejpoeta]

3. insurers have no reason to bring down their costs unless there is real competition.

and they don't have it right now. it's like they are all a little OPEC for healthcare, keeping prices high.

[DeeDeeNY]

2. K & R

[Hissyspit]

4. .