A Republican health-care plan to lower insurance premiums would need to cut payments to hospitals and doctors to the same level as federally-set Medicare rates and would require billions of dollars in extra government spending to meet its goals, according to an independent analysis of the policy.
The Republican amendment made Thursday adds what’s called the Federal Invisible Risk Sharing Program to the legislation to help appease conservatives and get the bill through the House. At a committee meeting to make the changes, one GOP congressman said it would lead to substantially lower premiums.
“We had an actuarial firm that did an analysis of this,” Gary Palmer, a Republican from Alabama who was one of the drafters, said Thursday. “What we believe will happen is a significant reduction in premiums.”
However, according to a 27-page assessment released Friday by the consulting firm Milliman Inc., such a proposal would likely cost the government far more than the $15 billion total over nine years that Republicans have provided for, and rely on essentially paying government-set rates paid to hospitals, doctors and other health providers to care for some sick individuals.
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