Obama Health Care Reform- What is the Public Option?
Many Americans are feeling a sense of hope now that health care reform is close to becoming a reality. While discussions continue at the federal level, many individuals are finding deciphering what the impact to their personal household will be. One of the most widely debated portions of the health care reform plan is the public option. The ultimate goal of this option is open the door for more Americans to obtain federal health care coverage.
The Purpose of the Public Option
The primary purpose of the public option plan is to provide health insurance options to individuals who don’t have access to insurance through their employer or for small business owners who want affordable plan options. The bill would create a Health Exchange, intended to act as a one-stop shop for consumer health insurance. While private insurance companies can participate in this process, they must meet minimum criteria as established by the federal government.
Private Insurer Standards
Some of the standards private insurers will have to meet include:
• The inability to deny coverage based upon pre-existing conditions
• Guaranteed renewable options
• Insurers cannot provide price differentials based upon gender
• Premiums based upon age will still be permitted, but the vast differentials currently charged today will be restricted
• Federal subsidies will be offered to individuals who fall within certain income parameters to pay for health insurance premiums.
• A cap will be applied to all policies for out-of-pocket expenses incurred by the policy holders annually.
In addition to providing these parameters on private health insurance offered to Americans, the primary purpose of the public option is to provide federal health coverage to individuals with methods in which to secure coverage. One of the primary fears felt by insurers is the competition being created and the potential financial impact to their organizations.
Health Care Reform Skeptics
While great progress is being made surrounding health care reform, there are still many sceptics. Will the plan be effective? Will more Americans have access to health insurance? How will these changes impact private health insurance companies? Will the quality of health care provided be compromised? While fear surrounds the changes proposed, the consensus at large is that some sort of change needs to be made. The ultimate question is, ‘What level of health care reform will provide the differences uninsured Americans are searching for?’
