Question of the Week: Health Care Reform
These questions are culled from phone calls, letters, faxes and e-mails sent to my Thousand Oaks, Solvang, and Washington offices. Each week I will add another question and answer.
Week of August 21, 2009
• Question: If Congress passes H.R. 3200, the Democratic health care bill, will I be able to keep my current insurance plan?
→ Answer: Most independent experts, including the nonpartisan Congressional Budget Office and the Lewin Group, agree that millions of people will probably lose their current insurance plans if H.R. 3200 includes a government-run plan because premiums for the government-run plan will probably be lower than most private insurance plans because:
• The government run plan may receive “seed” money and other subsidies from taxpayers.
• The government-run plan may not be subject to the same state laws and regulations as private plans.
• The government-run plan may not have to pay state, local, and federal taxes.
• The government-run plan may be allowed to impose payment rates on physicians rather than have to negotiate fees through an open marketplace. For example, as introduced, H.R. 3200 would have reimbursed doctors at Medicare rates plus 5 percent, which is approximately 15 percent less than payments made by private insurance. Although an amendment in the Energy and Commerce Committee removed this requirement, this amendment could be changed at anytime in the future.
Additionally, H.R. 3200 would allow government bureaucrats to impose new standards and mandates on insurance plans, such as which procedures and which prescription drugs the plan must offer. Current employer-sponsored plans would be grandfathered in. However, after five years, all employer-sponsored plans would be required to meet government standards. If they don’t, the employer and employee would be subject to a tax penalty.
For more information on health care reform, please see my Health Care key issue page.
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