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AHIP Statement on Government-Run Plan
Date:10/26/2009

WASHINGTON, Oct. 26 /PRNewswire-USNewswire/ -- America's Health Insurance Plans (AHIP) released the following statement today from Karen Ignagni, President and CEO:

"A new government-run plan would underpay doctors and hospitals rather than driving real reforms that bring down costs and improve quality. The American people want health care reform that will reduce costs and this plan doesn't do that.

"The divisive debate about a government-run plan is a roadblock to reform. It's time we focus instead on broad-based reforms that will ensure the affordability and sustainability of our health care system."

America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans

FACT CHECK: Government-run Plan - Does Not Control Costs and Disrupts People's Coverage

  • What the True Drivers of Health Care Costs Are:

Health care costs are rising at an unsustainable rate and adding a significant burden on families and employers across the country. Click here to find out important facts about rising health care costs.

  • Impact a Government-run Plan Would Have on Hospitals:

AHIP's study "An Illustration of the Impact on Hospitals in California of a Government-Run Health Plan that Pays Medicare Fee-for-Service Rates," examines the financial impact on hospitals if there were a large scale shift of individuals with private coverage to a government-run plan that reimburses providers at Medicare rates or Medicare rates plus 10 percent.

  • Medicare's True Administrative Costs:

Check out this report comparing administrative costs between Medicare and private health plans.

  • Milliman Study on the Impact of Cost-shifting:
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SOURCE America's Health Insurance Plans
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