Government
Physician pay could drop 6.8% under national public health plan, report says
NEWS IN BRIEF — Posted April 13, 2009
Physicians and hospitals would see their overall income reduced if a public health plan such as the one proposed by President Obama were expanded to all employers and paid at Medicare levels, even after adjusting for new patients and reduced uncompensated care, according to a new report.
Obama's proposal for a national public health plan to compete with private plans has not been laid out in detail by the president or lawmakers. But the report by the Lewin Group -- a health care consultant -- estimates that physician net annual income would drop by $33 billion, or 6.8%. Net hospital revenues would fall by $36 billion, or 4.6%. Losses would shrink or disappear if enrollment were restricted to small employers, individuals and the self-employed -- as Obama has proposed.
The report, released April 6, estimated that the number of privately insured people who would switch to a national public plan would vary dramatically based on the plan's limitations and rates. The report, titled "The Cost and Coverage Impacts of a Public Plan: Alternative Design Options," is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/04/13/gvbf0413.htm.
