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Opinion editorials Handling of Pit Appeal Calls for a Time-Out |
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opinion editorialsThis editorial first appeared in the Albuquerque Journal. It was written by editorial page staff and is unsigned as it represents the opinion of the newspaper rather than the writers
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Wednesday, October 28, 2009
'Medicare Plus 5' Isn't A Competitive Option
If you thought the “robust” public option being pushed by House Speaker Nancy Pelosi and liberal Democrats would compete fairly with private insurers and hold down the cost of health insurance, you would be very wrong.
The newest incarnation of public option, Medicare Plus 5, would in effect be subsidized by people with private health insurance paying more for premiums — the same Americans who already subsidize public health recipients by offsetting low government reimbursements to Medicare and Medicaid providers.
Medicare Plus 5 would limit payments to providers to 5 percent over what Medicare pays. Providers contend they already lose money on Medicare and Medicaid patients and make up for it with higher rates they charge private health insurance companies. In New Mexico, private insurers say they reimburse providers around 140 percent over Medicare.
Adding a Medicare Plus 5 government-run insurance plan would bump up costs for people who have private health insurance and employers who provide it. As the government finds itself unable to stem the natural desire of people to pay less for health insurance — and don't believe for a minute the political will to do that is there — it will set off a circle of escalating premiums and fewer private payers subsidizing a growing public plan.
This will not create a level playing field or hold down costs. Instead it will eliminate competition, running private insurers out of the game. It's a blueprint for a government run, single-payer plan. That may be worthy of debate, but that debate should be on the merits. Not this back-door bamboozle.
All members of New Mexico's congressional delegation have come out in favor of some form of a public option. But they should vote no on any plan in which reimbursement rates are tied to Medicare.
Some in Congress cling to the position they don't want to do away with private insurance. They can't reasonably hold to that if they vote for a Medicare Plus 5 option. Any public option should require the government nonprofit to negotiate with providers in a real competitive setting — a level playing field, as politicians are fond of saying.
Otherwise just put single payer on the table for an up or down vote and be done with it.
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