Bloomberg News reports that a Republican plan to lower health-insurance premiums would need to cut payments to hospitals and physicians “to the same level as federally set Medicare rates and would require billions of dollars in extra government spending to meet its goals, according to an independent analysis of the policy.”
“The Republican amendment made Thursday adds what’s called the Federal Invisible Risk Sharing Program to the legislation to help appease conservatives and get the bill through the House,” the news service reported.
“We had an actuarial firm that did an analysis of this,” Congressman Gary Palmer, an Alabama Republican who was one of the drafters, told Bloomberg April 6. “What we believe will happen is a significant reduction in premiums.”
But, Bloomberg said, an assessment released April 7 by the consulting firm Milliman Inc., concluded that such a proposal “would likely cost the government far more than the $15 billion total over nine years that Republicans have provided for, and rely on essentially paying government-set rates paid to hospitals, doctors and other health providers to care for some sick individuals.”
To read the Bloomberg article, please hit this link.