The tight presidential election is forcing the healthcare industry, especially private payors, to consider the implications of potential policy changes under both candidates, according to a Wall Street Journal report.
If elected, Mitt Romney would like to move Medicare recipients to private insurance coverage, according to the report. Currently, insurance companies run approximately 27 percent of Medicare plans, receiving payments from the government. The shift of Medicare recipients to private coverage could be positive for insurance companies since they could receive a large amount of new customers. However, the magnitude of benefit depends on how the program would work, according to the report.
Mr. Romney and running mate Paul Ryan say they want a system in which plans, including government-run Medicare programs, estimate costs to cover seniors in various parts of the country. According to the report, if seniors picked a plan costing more than their subsidy, they would pay the difference out-of-pocket, whereas if they picked a cheaper plan than their subsidy, they would receive a rebate for the difference, which would go into an account for future healthcare costs.
However, if the Republicans succeed in repealing the Patient Protection and Affordable Care Act, Mr. Romney and Mr. Ryan's plan could take away some business from private payors because millions of Americans would not be incentivized to purchase private insurance through health insurance exchanges. According to the report, industry officials also fear a situation in which Republicans can only partially repeal the law, which could leave in place requirements for covering the sick without the offset of gaining healthy new customers.
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If elected, Mitt Romney would like to move Medicare recipients to private insurance coverage, according to the report. Currently, insurance companies run approximately 27 percent of Medicare plans, receiving payments from the government. The shift of Medicare recipients to private coverage could be positive for insurance companies since they could receive a large amount of new customers. However, the magnitude of benefit depends on how the program would work, according to the report.
Mr. Romney and running mate Paul Ryan say they want a system in which plans, including government-run Medicare programs, estimate costs to cover seniors in various parts of the country. According to the report, if seniors picked a plan costing more than their subsidy, they would pay the difference out-of-pocket, whereas if they picked a cheaper plan than their subsidy, they would receive a rebate for the difference, which would go into an account for future healthcare costs.
However, if the Republicans succeed in repealing the Patient Protection and Affordable Care Act, Mr. Romney and Mr. Ryan's plan could take away some business from private payors because millions of Americans would not be incentivized to purchase private insurance through health insurance exchanges. According to the report, industry officials also fear a situation in which Republicans can only partially repeal the law, which could leave in place requirements for covering the sick without the offset of gaining healthy new customers.
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