FixHealthCarePolicy

Thousands of Montanans Could Lose Private Health Insurance, Study Shows

President Barack Obama heads to Bozeman, Mont., on Friday to sway a skeptical public on his health care plan. Montana, like five other states analyzed by The Lewin Group, would be hit hard by a government-run public plan.

An estimated 256,700 residents in Montana could lose their private, employer-based coverage if Congress passes a House health reform bill, according to state-specific analysis of The American Affordable Health Choices Act of 2009 released last month by The Heritage Foundation.

Heritage commissioned The Lewin Group, a highly respected health care policy and management consulting firm, to examine the impact a newly created government-run health plan within the House bill would have on Americans with private health insurance, including employer-based coverage, as well as its impact on Montana’s doctors and hospitals.

In addition to examining the national impact, Lewin analyzed several states including Montana to show how the major regions of the United States would be affected. Lewin’s estimates assume that all of the state’s employers become eligible for enrollment in the new public plan and health insurance exchange starting in the third year of implementation.

Of the estimated 489,200 Montana residents with private health insurance, 52 percent would transition out of private coverage, Lewin reports. Plus, 62 percent of the state’s population who get their private insurance from the workplace could have their existing coverage change or disappear under the House health bill.

“The data highlights the nasty, unintended consequences a government-run health insurance plan could have on states,” said Heritage Vice President Stuart Butler. “Many employees will be pushed into a public plan as employers respond to the legislation”s incentives to drop coverage.”

Another key finding from Lewin: 32 percent of Montana’s uninsured population would still lack coverage. Of the estimated 180,800 people without health coverage, the legislation would only reduce the uninsured by 123,200, leaving 57,600 Montanans without coverage.

Tags: HR 3200, Max Baucus, Montana, The Lewin Group