Under a healthcare reform proposal currently being considered by Congress, hospitals that accept Medicare and public plan payment would see payments for services reduced by an average of 32 percent below what private insurers pay for the same treatment. This projection is included in The Lewin Group’s analysis of the draft legislation introduced in the U.S. House of Representatives earlier this month, America’s Affordable Health Choices Act of 2009.
Other key findings in the report about the impact of the draft legislation include the following:
- The number of uninsured Americans would be reduced by 32.6 million.
- Payments for physician services would be reduced by an average of 14 percent below what private insurers reimburse for the same treatment.
- Premiums for a public plan would be an average of 20 percent less than private insurance premiums for families, and 25 percent less for individuals.
The Lewin Group’s analysis examines two scenarios that would result from a Commissioner’s determination of eligibility for the public plan option. It concludes that costs to federal, state and local governments would vary significantly, depending on eligibility limitations.
The objective of the analysis was to understand how alternative proposals for enacting the legislation would affect various public and private stakeholders. The 61-page report includes a discussion of the Act and its effects on each stakeholder.
