National Health Care Reform and Public Option
Impact of the Public Plan on Health Insurance Agencies and Consumers
Sep 4, 2009
As the late Massachusetts Senator Ted Kennedy put it at last year's Democratic National Convention, "This is the cause of my life – new hope, that we will break the old gridlock and guarantee that every American – north, south, east, west, young, old – will have decent, quality health care as fundamental right and not a privilege." With Obama's plan to rework the health care coverage system, every American will have access to medical insurance, either by private insurers, or by resorting to the much-debated proposition of the public option.
National Health Care Reform and Private Insurance Agencies
The ultimate objective of the Democratic plan to rework the health care system is to ensure that every American has access to affordable medical insurance. The plan allows that certain larger insurance agencies will be federally required to cover a specified number of patients, regardless of the patients' health conditions. Furthermore, the rates cannot be increased when patients actually require medical assistance. As large agencies will not be able to cover everyone, the government-run program, similar to medicare, is proposed to allow everyone access to coverage from private or public agencies. And choice of policy with the reform is up to the individual.
Small Businesses and the Proposed System
Small businesses will actually fare better with the proposed change in health care, as presently, these businesses pay an average of 18% more in health care coverage for employees than do larger firms, Christina Romer, Chair of the Council of Economic Advisers reports of the system, on behalf of the proposed change. With the health care plan as it is, small businesses will be able to choose the best coverage policies, and they will also receive tax credits to help compensate for their spendings. Overall, rates will drop significantly, and when small businesses save money, the employees' wages may increase, Romer notes.
The Public Option Plan in National Health Care Change
Though highly debated, the public option in the Democratic health care reform plan will be in place to serve anyone who needs it, or prefers it to private insurers. Although it is highly supported by most liberal Americans, many Republic politicians and citizens fear that the public option could destroy insurance agencies, and there is no doubt that it will certainly compete with them.
People who still have difficulties accessing coverage from private insurers, or believe that the public plan is more suitable to their needs would be able to use this government-run insurance program, if it is installed during the reworking of the system. However, people who are able to find coverage from private insurance agencies, or have been satisfactorily covered by private insurers may, by all means, refuse the public option, and remain with their trusted private agencies. The public coverage program is only proposed to ensure that there will be an option for those who may be having difficulties finding affordable coverage.
Impact of the Public Plan on Insurance Agencies
There is no doubt that the public plan will compete with private agencies, as it may be more affordable for some people. However, there is no pressure on people that should encourage them to switch from private insurers. With the proposed reform, consumers (and businesses) are free to choose any coverage plan that they desire, whether it be from any number of private insurers, or from the federal option for the public. As it stands now, Obama's plan for health care change will allow consumers to choose between private agencies, and the government-run program, and the dualism of these agencies would extend coverage to every American.
The public option in the struggle to rework the medical coverage system is perhaps the most controversial part of the plan, as it could potentially destroy the health insurance industry. Although no one would be forced from their current agents, some would choose the government option, which would be in place to protect those who cannot find coverage from private insurers.
However, because of its threat to private companies, the president is having trouble garnering support for his plan from Republicans. "The Public Option isn't something that President Obama views as essential and he's willing to compromise on it," Lee Stranahan writes in his September 6, 2009 Huffington Post article, entitled Watch: For Sale- The Public Option (OBO). And although it seems like one sure fire way to extend coverage to every citizen, the government-run plan is seen as dangerous to many Americans.
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