Obama Health Care

The health insurance industry has some lingering doubts about President-elect Barack Obama’s health care plan.  Even though they have supported a plan that will require them to accept all applicants without regard to pre-existing conditions, there are still concerns.  The National Health Insurance Exchange is giving them issue.

The National Health Insurance Exchange would give Americans a choice between a private plan and a government sponsored plan. The premise is that by combining government sources and open market options, the insured will have more resources with which to tailor a custom plan.  The New York Times reports Tom Daschle, the incoming HHS Secretary, as stating that the government’s plan is designed around the Medicare model.

The Plan would encourage competition between itself and participating private companies.  Proponents say the competition that it encourages is likely to drive down market rates.  The insurance industry, however, says this is not necessarily true.  They argue that the opposite is true, that the government plan would likely underpay doctors for services rendered, causing private providers to raise their prices to cover their losses experienced from government plans.

Karen Ignagni, president of America’s Health Insurance Plans, recently stated “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.”  President-elect Obama, in spite of differences, seems to be keeping his word regarding giving all parties an equal seat at the negotiating table.  This in itself is commendable.

Stephanie Cutter, spokesperson for Obama’s White House transition, recently said, “These are listening sessions.  We are trying to find people who share Obama’s goal of health care reform, even if they disagree on the specifics.”  Thousands of meetings have already been scheduled with health care reform as the subject.  All parties are being welcomed.

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Ethan Kalvin
http://www.articlesbase.com/insurance-articles/not-so-fast-obama-say-insurance-companies-704939.html

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