The House committee has reached a consensus on the Democratic side with respect to a plan that satisfies the left and center (Blue Dogs) of the Democratic Party. This includes the weaker version of the public insurance option, i.e., the government could implement a public plan but it would not automatically be able to access Medicare or Medicare plus 5 percent rates.
The good news is that this is likely to be a much less effective option and be very hard to make work and cause migration from commercial plans to the public plan. Thus, it may have much less of a short-term negative impact on providers. The bad news is that this may end up being a first step, if passed, to a strong public plan that would have a much greater negative impact on reimbursement for providers.
To learn more, read “Healthcare Reform: An Overview of Key Concepts.”
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