Thursday, July 30, 2009

Subtitle B (sections 221-226) - Public Health Insurance Option

ah, now we get to the meat and potatoes...

The Secretary of Health and Human Services would run this new health insurance option. It has to follow all of the same rules as any other insurance option under the new Exchange; by definition it also has to only be offered under the exchange. We also get another new deparment - office of the ombudsman of the health insurance option.

The option gets $2B (2,000,000,000) in startup money to cover initial claims before the payment of premiums. The bill literally states that any premiums are to cover the cost of the healthcare and any administrative costs. The $2B is to be repaid to the treasury over a period of 10 years.

In a nutshell, the rates to providers, hospitals, doctors, etc will be the same as done for medicare. For the first 3 years, this will include a 5% uplift, but after year 3 all bets are off. Any service which provides medicare options today will automatically be included as an in-network provider unless they opt out. Anybody else see a serious problem here? Who are the doctors and providers who offer their services for less?

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