COVERAGE: Details on Senate HELP's Proposal for Public Health Insurance Plan
Paul Testa -
June 30, 2009 - 12:05pm
Politico's Pulse has the scoop on what it describes as a draft of the Senate HELP committee's proposal for a public health insurance option. Likening the plan to the "level playing field" option proposed by Senator Chuck Schumer, Pulse says, "it won't be as liberal as the House, but it will be a strong alternative to the coop plan that is the emerging idea in the Finance Committee."
The details, as of now:
- Structure: The "community health insurance option," would be run by HHS. After the initial start up, which would allow for some risk adjusting to account for excess gains or losses, the plan would run self-sufficiently off its own premiums. The plan would be one option in the so-called Gateways, or insurance market exchanges, proposed in the HELP legislation. It would be subject to the same rules as private plans and set premiums "that are fair and based on local costs."
- Payment Rate: The HHS Secretary will negotiate payment rates that will be "no more than the local average private rates" but could be less. Provider participation is voluntary and State Advisory councils made up of consumers and providers will be set up to recommend strategies for improving quality and affordability.
- Potential Value: As structured, the community health insurance option would help make health care more affordable by pooling purchasing power, giving HHS more flexibility to promote payment policies that can drive quality improvements and best practices, and lowering the administrative overhead.
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Medicare coverage
I am a 73 year old semi-retired college professor. After years of smoking and now with COPD I now need supplental oxygen for mobility. I recently purchased a mobility scooter. I was quoted two prices. If medicare was going to pay, the cost would be $1900, if I paid cash for the scooter it would be $1100. Why shouldn't the cost be the same regardless of who is paying. If the price via medicare was $1100 wouldn't that save the government money, thereby reducing medical costs. I am sure this kind of thing is replicated over and over again with other medical supplies and medications.
For instance, I use a medication called Combivent with a list price of around $180 per inhaler if it was bought outright. I get a 6 week supply (3 inhalers) for a $35 co-pay. I discovered I could purchase these inhalers from a pharmacy in the UK with each unit costing $20. I bought them and showed them to my pulmonary doctor. He informed me that the UK inhalers are identical to the inhalers I get from the local pharmacy and that I could use them without concern. The UK inhalers and the ones from the local pharmacy are both made by Boehringer Ingelheim. Something is wrong here. Why do they cost so much in the US? If we paid the UK price would that lower the cost for medicare or my private insurance? I believe this sort of thing is replicated with most medications.
As part of health care reform, wouldn't it make sense to have medicare or private insurance and private pharmaceutical companies all revise pricing?
David N Perkins