Behind closed doors, the House and Senate leaders are trying to cobble together very different and complex provisions of their respective bills. A key issue is the impact of the public plan, a government run health plan intended to compete against private health plans. In the House version of the bill (H.R. 3200), payment to doctors and hospitals will be pegged to Medicare rates. Specifically, the bill calls for payment for medical services to be set at Medicare payment levels with a 5 percent increase for only certain physicians. In …
Once left for dead, it now appears likely that the health legislation Majority Leader Harry Reid (D-NV) will introduce sometime this week will include a government run health insurance program. One of the biggest reasons leftists support a government run plan is because they believe government run programs, like Medicare, have lower administrative costs than private plans. First of all, as the Washington Post’s Robert Samuelson notes today, that is simply not true: on a per person basis Medicare actually has higher administrative costs than the private sector. More importantly, …
Under the Baucus plan, just about everyone who is not covered by a government health program will be required to purchase insurance by 2013. To help pay for the mandated minimum coverage, individuals and families with incomes below four times the poverty line will receive a subsidy calculated on a sliding scale worth a percentage of their income, while those with incomes up to three times the poverty line will also qualify for a cost-sharing subsidy. However, even with help from the government subsidies, families will be required to pay …
