A recent medical insurance study predicts a public health insurance option for the middle class would put private insurers out of business.
The study, done by the Lewin Group, found that if such a medical plan were available to all employers and individuals, and if it paid medical doctors and hospitals the same as Medicare, the government health insurance plan would rapidly grow to 131 million members, while enrollment in private medical insurance plans would tumble.
The government health plan would be able to set premiums well below what private health insurance plans charge. Monthly premiums for family medical coverage would be $761 in the government medical plan, compared with an average of $970 in private health insurance plans. Employers and individuals would move to the public plan to reduce costs.
The study also estimates the public health insurance plan would reduce the number of uninsured by 24 to 28 million people. The only reason the health insurance plan would not cover all 48 million uninsured is because people are not required to have the medical insurance.
