Even though the health insurance industry has backed a plan which will require them to accept all applicants regardless of pre-existing health conditions, they still have their doubts about the incoming presidents health reform proposal. One part of President-elect Barack Obamas proposal isnt sitting so well with health insurance companies " the National Health Insurance Exchange.
In this Exchange program, Americans would have a choice between a private plan and a government-sponsored plan. The idea behind the Exchange is that you can combine market forces with government intervention when it comes to reform. According to incoming Health and Human Services Secretary, Tom Daschle, the government plan would be modeled after Medicare, reported The New York Times.
There are arguments for and against the Medicare-like plan. The insurance industry argues that the plan will underpay doctors and medical organizations for their services rendered, which would cause the private providers to raise their rates. They say that the losses they incur under the government plans must recouped. Supporters of the plan state that the competition is likely to drive down already inflated rates. The question to be asked is what is an appropriate rate for a private doctor or hospital to charge for a service, when compared to a similar government charge?
In spite of differences, it seems that President-elect Obama is keeping his word regarding bringing all parties to the table. Karen Ignagni, president of America's Health Insuranc Plans recently stated that, "A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four."
All parties are being welcomed to the thousands of meetings which have already been scheduled to discuss the issue of health care reform. Obama's team has noted that the meetings are designed to bring all parties to the table, regardless of whether or not they agree, to participate in an open forum on the subject. - 15224
In this Exchange program, Americans would have a choice between a private plan and a government-sponsored plan. The idea behind the Exchange is that you can combine market forces with government intervention when it comes to reform. According to incoming Health and Human Services Secretary, Tom Daschle, the government plan would be modeled after Medicare, reported The New York Times.
There are arguments for and against the Medicare-like plan. The insurance industry argues that the plan will underpay doctors and medical organizations for their services rendered, which would cause the private providers to raise their rates. They say that the losses they incur under the government plans must recouped. Supporters of the plan state that the competition is likely to drive down already inflated rates. The question to be asked is what is an appropriate rate for a private doctor or hospital to charge for a service, when compared to a similar government charge?
In spite of differences, it seems that President-elect Obama is keeping his word regarding bringing all parties to the table. Karen Ignagni, president of America's Health Insuranc Plans recently stated that, "A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four."
All parties are being welcomed to the thousands of meetings which have already been scheduled to discuss the issue of health care reform. Obama's team has noted that the meetings are designed to bring all parties to the table, regardless of whether or not they agree, to participate in an open forum on the subject. - 15224
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