This archive report was first published on 30 July 2019.
On July 30, 2019, the possibility of a Medicare buy-in or public option raised concerns about the future of Obamacare. According to an analysis by the Blue Cross Blue Shield Association, shifting people over 50 to Medicare could result in a 60% revenue loss for Blue Cross plans.
This could lead to a 10% increase in premiums for the remaining pool of insured people, as insurers would have to cover the costs of younger people with expensive medical conditions who have enrolled in the A.C.A. markets.
Tricia Neuman, a senior vice president at the Kaiser Family Foundation, agreed that a government buy-in attracting older Americans could raise premiums for those who remained in the A.C.A. markets, especially if those consumers had high medical costs.
However, some experts countered this prognosis, predicting that premiums could go down if older Americans moved into a Medicare-like program.
Former Secretary of Health and Human Services Donna Shalala stated, “The insurance companies are wrong about opposing the public option.”
Dr. David Blumenthal, the president of the Commonwealth Fund, warned that a government plan attracting people with expensive conditions could prove costly, likening it to high-risk pools.
Jonathan Gruber, an M.I.T. economist who advised the Obama administration, supported Mr. Biden’s plan and argued that a public option could be designed to help the failing system without shutting out private insurers.
