Senate Finance Committee Passes Amendment for Public Health-Insurance Option

Strategic Insights -

Senator Maria Cantwell (D-WA) attributes the success of her amendment, which creates a federally funded plan to compete with private insurance companies, to giving states the opportunity to opt in and negotiate with private insurers. This provision has driven down insurance prices by 30 to 40 percent in Washington State, and Cantwell believes it can be replicated nationwide. The amendment passed the Senate Finance Committee by a single vote, earning the support of Chairman Max Baucus and Senator Kent Conrad.

Key Takeaways:

  • The amendment, sponsored by Senator Maria Cantwell (D-WA), creates a federally funded plan to compete with private insurance companies, allowing states to opt in and negotiate with private insurers.
  • This provision has driven down insurance prices by 30 to 40 percent in Washington State, where it has been implemented.
  • The amendment passed the Senate Finance Committee by a single vote, earning the support of Chairman Max Baucus and Senator Kent Conrad.
  • The plan will be administered at the state level, with federal funding provided to support implementation.
  • Senator Cantwell believes that by allowing states to negotiate with private insurers on behalf of their residents, premiums will be driven down and competition will increase in the insurance market.
  • Each state will have the option to implement the public health-insurance option, with governors and state legislatures playing a key role in determining whether to participate.
  • Senator Cantwell estimates that this model will allow states to drive down premiums by 30 to 40 percent, as seen in Washington State.

Statistics:

  • 30 to 40 percent: the estimated reduction in insurance prices driven by the public health-insurance option in Washington State.
  • 100,000: the number of people in Washington State who have benefited from the public health-insurance option, resulting in a 30 to 40 percent reduction in insurance prices.
  • $5,000 to $6,000: the estimated current premium costs for health insurance in Washington State.
  • $3,000: the estimated premium cost for health insurance in Washington State under the public health-insurance option.
  • 50: the estimated number of different scenarios that will play out as states implement the public health-insurance option.

Sources:

  • MSNBC "The Ed Show" Interview with Senator Maria Cantwell (D-WA)
  • Huffington Post (as mentioned in the interview)