National Non-Profit Health Insurance Option Under Construction
By Matt Metzner | 11/13/2012 | Headline, Health Care | 68 Comments
Credit: American Progress
The United States is set to offer a national, non-profit health insurance plan. This new provision is a portion of the health care overhaul under the Affordable Care Act. The new provision is one of the more contentious portions of the national health care package.
Once this new provision is set in place the non-profit option, and thus the Obama administration, will be the sponsor of at least two nationwide health insurance plans. This new system will offer a health insurance plan to consumers in every state.
Unlike the original policy contemplated under the Affordable Care Act, this plan will act as a competitor for existing health care providers. The non-profit health insurance option replaced a pure governmental health care option that became the focus of a heated debate between the right and left.
Like other health insurance providers, benefits and premiums will be negotiated, and the US Office of Personnel Management has been charged with this task. The independent administrative agency serves many employment related functions and is also the primary conduit for security clearances for federal and civilian workers.
The plans that are structured by the Office of Personnel Management will be available to consumers through state health insurance exchanges. These exchanges act as marketplaces where consumers can find the most cost-effective healthcare options for their household.
Once put in place, a non-profit governmental agency, most likely the Government Employees Health Association (GEHA), will manage the health plans. GEHA currently manages the health coverage of over 900,000 federal employees and their households and is best suited for overseeing the non-profit option.
Commenting on GEHA’s role in the process, the association’s president, Richard G. Miles, stated “our expertise in the Federal Employees Health Benefits Program would be useful in the private marketplace, but we are concerned about the underwriting risk in providing insurance to an unknown group of customers.”
The Obama administration is expecting 750,000 people to select the federal non-profit option within the first year of operation.
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68 Comments
Jane Susskind
11.13.2012
@jsusskind
This is definitely one of the less talked about provisions in the overhaul of healthcare in the US. It sounds like this competing healthcare policy would make the healthcare industry more competitive, creating a marketplace for customers to pick the healthcare that best suits their needs and price range.
Lucas Eaves
11.13.2012
@lucaseaves
That is a good idea. And being a non-profit, the goal will not be money, money, money and might offer what people need at a reasonable price. We need to wait to see how it works.
Alex Gauthier
11.13.2012
@alexg
I never understood where the controversy behind this came from. Its an ‘option.’ no one that doesn’t want to use it, has to use it. if it sucks, you don’t have to buy it. very simple
Michael Higham
11.13.2012
@michaelhigham
I think those who oppose the option are worried about inefficient use of taxpayer funds.
Emma Goda
11.13.2012
@emmagoda
This is super interesting about Non profit health insurance plan and I agree with Alex, if you don’t like it don’t buy it.
Marion MG
11.13.2012
All insurance should be non profit
Paul Shiras
11.13.2012
Absolutely. No child should be denied health insurance. If the Government offers a lower cut policy then the private Insurance companies wil follow suit and it will become affordable for more people. That is called fair competition and a level playing field.
Scott A. Tidwell
11.13.2012
I smell a monopoly but since its the federal government, then its ok. But if it was a private business, thats another story.. Ladies and gentlemen.. the old double standard.
Gary Olson
11.13.2012
A YES!!!
Marion MG
11.13.2012
Blue cross was the first ins provider & it was non profit
Juan Oscar
11.13.2012
Mention the massive layoffs coming due to obamacare, the thousands of regulations and tax hikes as well…
John Morris
11.13.2012
No
Jason 'Egg' Brown
11.13.2012
The government should just get out of health care, period.
Cindy Bailey
11.13.2012
Great idea.
Tom Diamond
11.13.2012
When the government completes with industry, blue cross doesn’t print their own money. And what OS dirty about profit? Coming from a capitalist country I will never understand.
Joe Moore
11.13.2012
No but the government could do plenty to help fix healthcare. I’m not a fan of single payor systems but there are advantages such as ease of transactions for the provider. Today 31 cents of every healthcare dollar in the U.S. goes to administration (red tape) whereas in Canada it’s roughly 3 cents. The U.S. could do one better if a single clearing house was established with defined standards so more competition between insurance providers would drive the cost down. We’d have the efficiency and cost savings of the single payor system combined with the competition that drives cost down and quality up. It’s really pretty easy but will never happen. The ACA is nothing more than a continuation of corporatism with government and big corporations (BCBS, United Health, etc.) in cahoots. Costs will continue to rise and quality will go down.
Carles Antonio Ximénes
11.13.2012
I want to know which private insurance company is underwriting Obamacare and what codeword they’re going to use for “profit”. ;)
Yvonne Adams
11.13.2012
Unable to trust anything put forth by this illegal and highly corrups administration.
Chandler Stalvey
11.13.2012
Very definitely YES
John Haag
11.13.2012
Yes. We should. I’d go further and make Medcare available for all.
John Haag
11.13.2012
How is this administration “illegal,” Yvonne? Please be as specific as you can be.
Luke Enoch
11.13.2012
Medicare for all aka single payer system please.
John Haag
11.13.2012
The Fox “News” GOP anti-reality bubble is certainly aparent in the anti-Obama posts here.
Beth Hopkins Acampora
11.13.2012
YES YES YES YES YES
Robert Schmid
11.13.2012
YES!! We should also have a Uniform Insurance Code similiar to the Uniform Commercial Code so that Insurers/Insured can sell/buy across state lines.
Scott Burger
11.13.2012
http://www.thequidproquo.com
David Haney
11.13.2012
ABSOLUTELY YES!!!
Evelyn Billington
11.13.2012
yes yes and yes again. the only way health insurance works is by making it non profit. Just look at Europe and other countries who have successful health care insurance for their entire populace. Free market does not work in regard to insurance. All you get is rich insurance companies and ordinary people going bankrupt on medical payments.
Christopher Smith
11.13.2012
Is it like the US Postal Service or CalTrans if so it sure as hell is for a profit, just not to the public. Is it like Kaiser glorified Clinic Care or Private Doctors? Does anyone ever ask questions any more or are they just like, yaaaaaaaa free stuff that they tax me for anyways?
Dixie L Williams
11.13.2012
if its run by the Government count me out.
Juan Oscar
11.13.2012
@john haag, no, we just calling out unamerican bs, doesnt sound good, think longterm, is a law of over 2000 pages, which no dem politican read, and it doesnt (as per cnn, fox, ny post, wsj, ) do what it promises….
Mike Shortridge
11.13.2012
i can help you there John Haag … NDAA is in direct violation of the 5th amendment … not to mention patriot act, DHS, and many others. obama blatantly broke the oath of office. it is as clear cut as it gets, but left won’t even talk about those issues.
Mike Shortridge
11.13.2012
it really won’t matter much longer anyhow.. the derivatives market is on the verge of a collapse that will make 08 look like a walk in the park. so yeah .. more free crap, why not.. just print a billion for everybody!
Richard Boehme
11.13.2012
Its called the road to single payer system, then the govt will decide when you get care, by who & what level you deserve. This is why Canadians come here when they have dire health care needs.
Ruthie Gale-Paredez
11.13.2012
I met people from Canada the other day that think we are backwards because we do not have National Healthcare. They say it is the best ; )
Janet Lynn
11.13.2012
Oh for goodness sakes. Haven;t you got the fact that anything the Federal Govt tries to run costs ten times what it should and never works. Check out Medicare, Social Security, Medicaid …..do I need to go on…………….if you think they should then I guess you voted for Obama”””””””’
Jerry Sawchuk
11.13.2012
If Obama care is to cover everything can someone tell me why Medicare and Medicade doesn’t all fall under Obama care. I understand now but it looks like down the road it going to be Obama care when they drive everyone out of business.
Jerry Sawchuk
11.13.2012
Ruthie that’s why the people come here because there’s sucks.The nurses also come here to work because of the pay. I lived there its not good if u have somethig fatel.
Luke Enoch
11.13.2012
The only Canadians that come to the US for healthcare are the ones that can afford the full price of treatment or operations, meaning they don’t need insurance.
Luke Enoch
11.13.2012
Some people should use the Internet for stuff besides making themselves look foolish. http://en.wikipedia.org/wiki/Health_care_in_Canada#Canadians_visiting_the_US_to_receive_health_care
Richard Boehme
11.13.2012
People in Canada come here because of the wait involved if they have pressing needs. The governor of Nova Scotia came here for heart surgery for that very reason.
Richard Boehme
11.13.2012
Do you want the govt to decide who you see, when you see them and what level of care you deserve.
Julia
11.15.2012
This is only a health insurance option. If you don’t like what they offer, go with a different company.
Luke Enoch
11.13.2012
Richard, it never crossed your mind the US has the best heart surgeons? In regards to the New Foundland premier, “There’s no question that this is not a queue-jumping issue,”… http://www.cbc.ca/news/canada/newfoundland-labrador/story/2010/02/02/nl-williams-heart-010310.html
Angelo Giuliano
11.13.2012
Non profit health care makes sense.. i dont want doctors looking at me as profit but a person same with my health insurance provider. if im sick im sick cure me do not dump me on the side of the road cause you bled my bank account dry. (which does happen whether the anti obamacare people want to acknowledge it or not)
Steven Maher
11.13.2012
Go to Politifact.com and research The Affordable Health Care Act A.K.A. Obama-care. Educate yourself by reading source’s that are less likely to be biased. Otherwise, most people don’t have a clue about the new health care reform and are only reading slandering sources that are mostly opinion based.
Katherine Hunt Arabis
11.13.2012
Great. Sounds good. Then maybe these blood sucking insurance companies will have to compete!
Katherine Hunt Arabis
11.13.2012
It’s just one option people, if it sucks, the people will opt to buy the more expensive private plans. If it does a good job, then the private plans will have to compete. It’s called a free market, you know, capitalism.
Robert Hayton
11.13.2012
Not unless those plans offer unrestricted access to chiropractors, naturopaths, accupuncturists, herbalists, etc.
Thomas O'Shea
11.13.2012
YES!!!
Mary Gilbert
11.13.2012
yes
Curt Greenleaf
11.13.2012
Well Run Government Programs- 1. Social Security/Medicare ; status- Going Broke 2. Fuel Tax ( Provides maintenance and Infrastructure creation. Only 15% of the funds actually are applied. The balance is used for Other programs).; Status- Terrible. 3.United States Government; Status Nearly Bankrupt. 4. Public Education System; Status-Test Grades and General Intelligence Nose Diving. 5. Fannie and Freddie Government based Mortgage services; Status – Disaster! Main cause of Housing Crisis by lending to Unqualified borrowers. United States Constitution; Status -Nearly Nonexistent due to Government Intrusion and Reduction along with Inattentive Citizens.
Julia
11.15.2012
This is because greedy politicians can’t keep their hands out of the cookie jar.
Judy Ferro
11.13.2012
Yes, but I don’t think this is in the current legislation…
Carrie Calentine Lyon
11.13.2012
When I think of nonprofit on a smaller scale like a local nonprofit in order for the doors to remain open they must depend on donations from people in the community. Without donations their doors close. So who is going to donate to this nonprofit healthcare to keep it going??
Bill Davis
11.13.2012
Hell yeah!
Micheal Cosby
11.13.2012
Yes!
Hugh MacKay
11.13.2012
Yes!
Joanne Bonner Leavitt
11.14.2012
Then you can continue to buy from the highly ethical and trustworthy commercial, for profit insurance companies.
Dianne DeMattia
11.14.2012
well let me just say that our non-profit before and afterschool childcare, provided by our local gov’t, is the most expensive childcare around. They have a monopoly at all school sites. All day tuition at the local Catholic school is cheaper than the public, non-profit before & after school program. There is no WAY gov’t can do health care cheaper, guaranteed!
Jessie A Nichols
11.14.2012
yep!
Jessie A Nichols
11.14.2012
yes
Scott W. Trent Jr.
11.14.2012
@scott_w-_trent_jr
I like the “idea” and WE do need a single payer system for EVERY ONE….. also IF YOUR CONGRESS would leave (LEFT) the dollars in the TRUST FUNDS that YOUR CONGRESS created, then NONE of the Trust Funds would be in trouble. SO GET OFF YOUR asses and TELL YOUR CONGRESS person, if that is what they are? to leave the damm dollars that go into the Trust Funds in there and to ADD BACK the dollars THEY TOOK OUT…… THEN NONE OF US will need to worry abt. the “entitlements”, not even the hwy. funds!!!!!!!! GET IT RIGHT FOLKS, GET R’ DONE!!!! YOU ALL are bitching in the wrong place!!!!! YOU re-elected YOUR FOOL<, now TELL THEM to do RIGHT!!!! IF YOU HAVE THE GUTS!!!!!
Randy Womack
11.14.2012
Yes.
Steven Helsel
11.14.2012
Just another way of undercutting our private insurance so everyone will have to go Obama’s way…..then healthcare will be in the crapper just like England! Wake up people!
Julia
11.15.2012
Um, have you seen how well the “socialized” health care system works? People in America die everyday because they don’t have insurance and can’t afford the office fees. People who live in countries with a single payer/universal healthcare system are healthier and live longer on average. Their system works, ours does not.
Wayne Treece
11.14.2012
No as Ido not think the government should be in the insurance business
Julia
11.15.2012
I really like the sound of this. I am excited for the reforms that are coming with the healthcare bill, but this one takes the cake. I recently got married and have been looking for insurance that is affordable and will cover both of us with our preexisting condition, we both have asthma, which is not easy to do on a low budget. I hope this part of the overhaul begins soon. I would really love to have good insurance at an affordable price.