9.10.20 / Updates

ICYMI: “Report Finds Public Option for Health Insurance Could ‘Limit Competition and Consumer Choice’”

WASHINGTON – As proponents continue to paint a new government-controlled health insurance system called the public option as a “moderate” proposal to Medicare for All, a new report finds the public option could “limit competition and consumer choice.”

The report from FTI Consulting and the Partnership for America’s Health Care Future found the public option “would only exacerbate stresses on the health system.  Instead of improving access to care and supporting health system capacity, the public option could instead leave many Americans worse off.”

Key Findings:

  • Implementation of the public option would threaten hospital services and their ability to remain operational during this crisis. 
  • Already operating under razor-thin margins, the public option could increase revenue losses for hospitals in rural and underserved communities by more than 40% — threatening access to affordable, high-quality care. 
  • Nationwide, America’s hospitals and health care providers could face a 60% increase in revenue loss, which would hurt the nation’s ability to respond to the next public health crisis. 
  • States such as California, Texas, Florida, Georgia, and Arizona would experience significant financial consequences due to the current public health crisis under the public option scenario.  State and local governments would be deprived of the necessary revenue needed to fund public health efforts to contain future outbreaks.



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