Public Health Insurance Option Rejected by Senate Committee
By: Health Insurance
Submitted: 2009-10-07 13:28:02 | Word Count: 500
The Senate Finance Committee rejected an amendment Tuesday that would have created a government-run health insurance plan. The committee voted 15 to 8 to reject an amendment proposed by Senator John D. Rockefeller IV. Rockefeller, a Democrat from West Virginia, sought to add a public option called the Community Choice Health Plan.
All Republicans on the panel voted against Rockefeller's amendment, in addition to Democrats Senate Finance Chairman Max Baucus,Senators Bill Nelson,Kent Conrad, Blanche Lincoln, and Thomas Carper. President Barack Obama has stated that he would prefer that the legislation contain a public health insurance plan, he has also said that he is open to other ideas that increase choice and competition.
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Rockefeller's plan, subtitled "Making Coverage Affordable" was a two page plan that began with, "Establishment and administration of a public health insurance option as an Exchange-qualified health benefits plan. Requires the Secretary of Health and Human Services to develop a public health insurance option to be offered starting in 2013 as a plan choice within the Health Insurance Exchange. It participates on a level playing field with private
Sen. Charles Schumer, a Democrat from NY, offered an amendment Tuesday that would create a public health insurance option, but which would pay doctors and hospitals at negotiated rates, rather than Medicare rates.
In the "Level Playing Field Option", Schumer wrote, "The new national level playing field public option must adhere to the same rules (actuarial reporting, community rating and guaranteed issue) as all other plans in the Exchange and must be self-sustaining with premiums and co-payments covering claims ... The government must not use existing programs like Medicare as a stick to compel providers to participate in the public option. Instead, doctors and hospitals should be able to voluntarily opt-in to participate in the public option.
This amendment is also expected to fail.
Mr. Rockefeller and Mr. Schumer's efforts to add a public plan to the bill were just the tip of the iceberg for a fuller battle that will happen on the Senate floor in the weeks ahead. Most Senate Democratic leaders do not believe there will be enough support to add the public option to the bill.
Insurers are opposed to a public health insurance plan in any form. Members of AHIP include leading insurers such as Aetna Inc., Humana Inc., Cigna Corp. and UnitedHealth Group Inc. A spokesman for the America's Health Insurance Plans trade group,Robert Zirkelbach, said in a statement that a public health insurance option "would dismantle employer coverage, bankrupt hospitals, and add to the federal deficit."
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