Lies, Damn Lies and the Public Option

A quick look at the "Public Option"

1-Will the Government set the reimbursement rate as it does now with Medicare? YES

(Medicare reimburses at about a 75% rate, or less vs private insurance. The Medicare rate is set by government dictate)

2-If they set that rate like Medicare will it be pegged to the Medicare rate? YES

(The claim by the ObamaCare folks is , "the details will have to be worked out", but look for the rate to be close to 20% less then private insurance)

3-If not the same as Medicare will it be closer to the Medicare rate or the average rate of the 3 lowest private insurance carrier rates? MEDICARE

(Private insurance negotiates rates with doctors, hospitals, labs etc. That is why networks are different from carrier to carrier. If the public option has rates much lower, private insurance carriers will be at a competative disadvantage, because of government power.)

4-Will Providers (doctors, hospitals, labs, etc) HAVE TO JOIN the Public Option Network? YES

(Providers , doctors, hospitals, labs etc WILL BE FORCED TO JOIN THE "Public Option" network if they want to continue to treat Medicare beneficiaries. Another way to put it, providers will have to join the "public option" and be forced to accept lower payments then private insurance)

5-Has the government in the past lowered the reimbursement rate to Medicare providers as a way to deal with rising expenses? YES

(Since Medicare is going bust, the Federal government has continued to lower the reimbursement rates for providers, strict price controls. This results in the providers charging more to private carriers because they need to make up the difference, classic cost shifting at work.

It is clear that the ObamaCare proponents want the full in "public option" This will result in more cost shifting to the private sector and doctors dropping Medicare so they don't have to join the public option. Eventually the cost shifting will have the effect of driving the private carriers out.

Pretty simple to understand, and they do, thus the LIES.