Yesterday, I reported that George Halvorson, CEO of Kaiser Permanente, had signed onto Commonwealth Fund's vision of health reform -- which included a Medicare-backed public plan. What I hadn't know is that when he signed on, he'd also privately conveyed his skepticism about that aspect of the proposal. His press people sent along this clarification:
When George put his qualifying statement on the signature page, he also sent a separate note to [Commonwealth Fund director] Karen Davis expressing his concerns more directly. This language might help you better understand his issue: “While I applaud the overall vision of the report, I do continue to have concerns about the inclusion of a Medicare-sponsored public plan. Any Medicare equivalent plan, with an artificially low price point based on administered pricing and non-negotiated fee schedules for providers will be an unfair and hidden tax on every American who chooses to purchase private insurance coverage… The ‘Path to a High Performance US Health System' provides many important insights, and my concerns are limited to the inclusion of a Medicare equivalent plan offered with artificially low pricing.”
So there you have it. The insurance industry remains united against a public insurance option.