August 19, 2021 | Updates

Public Option Watch: ‘Worse Care For Patients’

WASHINGTON – As politicians in some state capitals discuss creating new state government-controlled health insurance systems known as the public option or state government option, there is a growing body of research and chorus of opposition warning of the unaffordable costs and consequences. 

  • If the state government option were able to copy Medicare’s payments,providers wouldbe negatively impacted. 
  • A 2019 study from KNG Health Consulting found a country-wide public option would cost hospitals $800 billion in payments over 10 years due to lower reimbursement rates. 
  • To make up for those losses, health care providers would have to reduce headcount or cut service lines. As a result, patients would have to wait longer to see specialists—or would have to make do with treatment from outdated technology. (Sally Pipes, “Government-Sponsored Health Care Roundup: Where The States Stand,” Forbes, 5/10/21) 

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