ANALYSIS: Democrats’ Plan Forces 114 Million Americans Out Of Their Current Health Coverage

July 6, 2009 — The Prescription Pad   
The Prescription Pad   
Health    Full Committee   

A new study by an independent research firm predicts the government-run insurance plan proposed by House Democrats will force 2 out of 3 Americans to lose their current health coverage.  The June 2009 Lewin Group analysis of the House Democrats’ health “reform” bill found that:

  • 114 million Americans would be forced out of their current private health coverage, including more than 106 million Americans who currently have employer-provided health care. 
  • The cost of private health coverage will skyrocket (for the relatively few Americans who are rich enough to retain it).
    • The Lewin Groups estimates the Democrats’ government-run plan will significantly underpay health care providers, generally compensating them at rates 20-30% below what private health plans would pay for the same services. 
    •  As a result, physicians and hospitals would be forced to charge those with private insurance more in order to offset the losses they experience under the Democrats’ government-run plan.
      • A December Milliman Group study found current Medicare and Medicaid underpayments drive up the cost of private coverage for the average family of four by $1,788. 
      • The Lewin Group study estimates the cost-shift problem would only get worse under a government-run plan that pays Medicare-based rates.  Lewin assumes this would increase the cost of private health insurance by $460 for every American – meaning $3,628 in added premium costs for a family of four as a result of current cost-shifting and the Democrats’ government-run plan. 
  • Medicaid enrollment would increase by 16 million.  Many of those newly enrolled in Medicaid under the House Democrat plan would previously have had employer-provided health care.  By displacing employer-sponsored coverage, taxpayers will now spend billions more paying for people who already had health coverage.  

   
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