States May Get to Opt Out of Health Care Plan
Posted in Health Care , Health Insurance
October 27th, 2009
If Senate Majority Leader Harry Reid (D-Nev.) gets his way, states will be able to opt out of a proposed government-run insurance plan. The plan, which was recently placed on the table, would serve as a low-cost alternative to private insurers.
The Basics of the Proposal
Reid’s government-run insurance proposal sets an ambitious goal of insuring more Americans and curbing rising medical costs. A couple of basics of the proposal include:
- Rate negotiations with physicians: The government would be responsible for negotiating rates directly with doctors and hospitals.
- No ties to Medicare: Reid makes clear that the plan not be tied to low rates paid by Medicare.
- Combination of existing bills: A couple of bills have already been passed in Congress. Reid intends for the proposed plan to combine them into one.
The public plan with state’s ability to opt out comes from his battle with whether to require employers to insure workers versus the national government paying for coverage, as well as how the legislation will be paid for.
Reid Meets with Opposition
Virtually all Republican senators and about half of Democratic senators are leery of the proposal. Sen. Ben Nelson (D-Nev.) expressed concern of a national plan, instead hoping that states could tinker with their own public plans. Reid’s dilemma is that President Obama prefers some type of government-run plan. This means that Reid holds the responsibility of marrying the Senate Finance Committee’s recently-passed bill with the Senate Health Committee’s more liberal bill (passed in July) so that they both meet Obama’s wishes.
Whatever final proposal Reid brings to the floor for voting needs to garner the support of 60 senators in order to overcome an expected Republican filibuster.
Are you for or against government-run insurance with each state’s ability to opt out?