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Proposal to Appease the Health Insurance Companies

Leading Democratic Senator Charles Schumer of New York made a proposal this week in an effort to assuage fears among private insurance companies. One of the largest barriers to health insurance reform and the possible formation of a single payer health care system, was the promise Obama made to allow private insurers to exist alongside a government plan. Private insurance companies however feared that a government plan would have a great many advantages over private plans as far price and certain other factors were concerned. Schumer therefore proposes to make any government plan closely resemble private plans by meeting the same regulations and requirements. Obama had hoped that in creating a government plan, private plans would be forced to compete and therefore bring down prices, but private insurers fear being driven out of business. If Schumer’s proposal came to pass, what benefits would the government plan have to offer that would successfully inspire competition among other health insurance carriers ?

This entry was posted on Wednesday, May 6th, 2009 at 11:11 am and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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