Current reform plan would cut public hospital fees to below private plan levels

According to a new analysis by The Lewin Group, under a health reform draft currently under consideration by Congress, the number of uninsured Americans would fall dramatically, by about 32. 6 million, and premiums for a "public option" plan would be an average of 20 percent less than private plans for families.

However, things don't look so rosy for providers, the report suggests. Hospitals that accept Medicare and other public plan reimbursements would see cuts that take them down to an average of 32 percent below what private health plans pay. Physicians would see their pay cut by an average of 14 percent below what private insurances pay out for a given treatment, Lewin's analysis concluded.

While Lewin doesn't make a big deal of it, apparently it does support the conclusion that a public plan would put considerable pressure on private plans to lower their premiums, something employers and consumers are likely to favor. However, clearly providers face a real threat here. This data is definitely something to chew on.

To learn more about Lewin's report:
- read this HFMA News report

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