Friday, July 10, 2009

114 Million would be forced OUT of private Health Coverage

If the Democratic "health" plan is passsed.

  • 114 million Americans would be forced out of their current private health coverage, including more than 106 million Americans who currently have employer-provided health care.
  • There will be substantial cost shifting to private health plans. The "public" plan will significantly underpay health care providers, generally compensating them at rates 20-30% below what private health plans would pay for the same services. As a result, physicians and hospitals would be forced to charge those with private insurance more in order to offset the losses they experience under the Democrats' government-run plan.
    • A December Milliman Group study found current Medicare and Medicaid underpayments drive up the cost of private coverage for the average family of four by $1,788.
    • The Lewin Group study estimates that a government-run plan that pays Medicare-based rates would increase the cost shift to $3,628.
  • Medicaid enrollment will increase by 16 million.Many of those newly enrolled would previously have had employer-provided health care.