Would a government insurance plan dismantle employer coverage, as the insurance industry claims?
Private insurers are forced to, at a minimum, break even. They can’t afford to lose money promiscuously. A public insurance company, on the other hand, faces no such constraints. Look at Medicare, which is hemorrhaging money in terms of its future liabilities. In an attempt to reduce these future liabilities, Medicare is reducing the reimbursements rates that it pays to hospitals and doctors for providing services. The problem with this approach is that a big chunk of health care expenses are fixed costs, and if Medicare, or this new public insurance option, chisels down what it’s going to pay doctors, somebody else has to pay those costs. They end up getting pushed onto private insurance companies, which will see their rates have to go up as a consequence, making them eventually unable to compete with the public option. In a nutshell, forced under-reimbursements from the public option will cause health care providers to look for remuneration elsewhere, forcing them to charge higher ra
Related Questions
- My spouse has health benefit coverage under her employer. Can I deduct the eligible expenses that are not covered by her plan under my PHSP?
- What if I have prescription drug coverage from another type of insurance (employer, union or retirement plan)?
- Would a government insurance plan dismantle employer coverage, as the insurance industry claims?
