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August 21, 2009How Harmful Is a Public Plan?
What is the best estimate of how a public plan for health insurance, as outlined in the health bill Democrats are moving through the House, would impact American health care
In seeking an answer to this question, The Heritage Foundation commissioned The Lewin Group, a highly respected health care policy and management consulting firm, to examine the national impact of the bill (H.R. 3200, the “American Affordable Health Choices Act of 2009”).
Lewin projected:
– 48% of privately insured Americans would transition out of private insurance.
– 56% of Americans with employer-based coverage would lose their current insurance.
– 34% of the uninsured in America would still lack coverage.
– Physicians would see their payment levels decline by $31.7 billion as a consequence of the new public plan.
– Hospitals could see their net annual income fall by $61.9 billion, which roughly eliminates hospital total margins.
With estimates from Lewin, the Congressional Budget Office and other groups projecting that millions would lose their private care coverage, it’s important for Congress to slow down the speedy process of pushing through a massive overhaul to our health care system and examine what would and wouldn’t really work.
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