Study: Medicare public option proposal could hurt patients, hospitals

Creating a government-run, Medicare-like option on the individual health insurance exchanges could negatively affect patient access to care and reduce hospital payments by nearly $800 billion over 10 years, according to a study by KNG Health Consulting released today by the AHA and Federation of American Hospitals. The proposal also would result in only a modest drop in the number of uninsured Americans compared to the number who would gain coverage by improving on the existing coverage framework, and be disruptive to both the individual non-group and employer-sponsored health insurance markets, the analysis of the Medicare-X Choice Act found.
 
“It is not practical to disrupt coverage provided through employer-sponsored plans that already cover more than 150 million Americans,” said AHA Executive Vice President Tom Nickels. “America’s hospitals and health systems remain committed to working together with policymakers to help expand coverage and reduce costs for all Americans. However, a ‘Medicare for All’ approach would impede, not advance, our shared goals.”