Home Ripple Ripple Effects: Potential Impacts of a National Public Option on Provider Viability and Disparities in Access to Care | FTI Consulting

Ripple Effects: Potential Impacts of a National Public Option on Provider Viability and Disparities in Access to Care | FTI Consulting

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[co-author: Sabiha Quddus]

The COVID-19 pandemic introduced into sharp focus the extreme inequities that plague the U.S. well being care system. At the moment, because the nation emerges from the grip of the pandemic, choices about the way forward for well being care coverage within the U.S. have to be thought-about by way of the prism of well being fairness, taking into consideration the direct and oblique penalties of well being reforms on weak populations. President Joe Biden and Congressional Democrats are exploring coverage proposals to determine a public possibility, a government-run plan designed to compete with non-public plans on {the marketplace}. As policymakers search to develop protection by way of a brand new authorities insurance coverage possibility, they need to additionally take into account how this system and its use of decrease supplier reimbursements may in the end impression entry to look after weak Individuals.

A earlier evaluation by economists at FTI Consulting discovered that below a public possibility, suppliers confronted with a sudden inflow of sufferers on authorities plans with decrease reimbursement charges may expertise new monetary challenges. On this temporary, we sought to additional study how these monetary constraints may exacerbate current entry challenges amongst low-income and racial and ethnic minority communities. Our evaluation revealed that greater than half of the hospitals noticed may lose income below a public possibility, a good portion of which serve various – and infrequently weak – affected person populations. Consequently, these hospitals may very well be pressured to decide on between lowering service traces to remain afloat or closure. Such disruptions to well being care entry in these communities has the potential to exacerbate current well being disparities.

Please see full Report beneath for extra data.


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