Public Plan Option Would Reduce Private Plan Participation By The Millions

A public health insurance option as proposed by the President (limited to small employers, individuals and the self-employed) that assumes Medicare payment levels, would lead to a 32 million-person decline in private plan participants, according to a study released yesterday by The Lewin Group. If private payer reimbursement levels are used, 10.4 million people are estimated to switch.

If the public plan is open to all employers at Medicare payment levels, Lewin estimates a two-thirds reduction in private insurance enrollment. Participation would decrease from 170 million people to 119.1 million. Using private payer levels, enrollment in private plans would decline by 12.5 million.

What do you think of these results, are they what you would expect from a public plan? Share your thoughts below.