The creation of a public health insurance plan “that competes on a level playing field with private insurance plans in an exchange”—a model put forth in the health plans of President Barack Obama and Sen. Finance Chairman Max Baucus (D-Mont.)—would help rein in health care costs, in part by reducing physician reimbursements, according to a new report from the progressive think tank Institute for America’s Future (IAF).
The IAF report contains these findings:
• Medicare has controlled health care costs much better than have private health insurers over the last 25 years.
• The private insurance market is highly consolidated and needs competition from a public health insurance plan to lower skyrocketing premiums.
• Administrative costs are dramatically lower under public health insurance plans, resulting in enormous savings to the system.
• The bargaining power of public health insurance plans significantly reduces provider costs.
• In a head-to-head competition, the public Medicare plan is much better at containing costs than private Medicare Advantage plans.
• Independent analyses show substantial savings can be achieved from a public health insurance plan that competes with private insurance plans.
• Quality and effectiveness innovations occurring under the public Medicare plan show that public health insurance plans have greater potential to drive the quality revolution than do private plans.
• Public health insurance plans increase choice, competition and accountability.
Click here for the Press Release (http://institute.ourfuture.org/news-release/2009020605/new-report-shows-why-health-care-reform-must-include-obamas-public-health-in).