The Public Plan Threat to Your Health Care

Patrick Bell / April 06, 2009

A new study released today by the Lewin Group, one of the most well-respected health care consultancies in Washington, gives new estimates on “The Cost and Coverage Impacts of a Public Plan” like the one being considered by President Obama and the congressional leadership. The Lewin Group says that “If the public plan is opened to all employers…at Medicare payment levels we estimate that about 131.2 million people would enroll in the public plan. The number of people with private health insurance would decline by 119.1 million people. This would be a two-thirds reduction in the number of people with private coverage (currently 170 million people).”

The study also examined what the proposed plan might do to provider reimbursement rates. Lewin says that if current Medicare payment rates were to be used for a public plan option, physicians would see their net income drop by $33 billion dollars, and hospitals would see their revenue fall by $36 billion.

Last Wednesday, the New York Times published a story reporting that Doctors Are Opting Out of Medicare, in part because of low reimbursement rates: (more…)