BLOGROLL

Senator Hatch led a group of 8 Senators this week in delivering a message to President Obama opposing a government-run plan in health care reform:

At a time when major government programs like Medicare and Medicaid are already on a path to fiscal insolvency, creating a brand new government program will not only worsen our long term financial outlook but also negatively impact American families who enjoy the private coverage of their choice. A recent Milliman study estimated that the cost-shifting from government payers (specifically Medicare and Medicaid) costs families with private insurance nearly $1800 more per year.

Furthermore, actuaries at the Lewin Group have concluded that such a plan open to all, and offering Medicare-level reimbursement rates, would result in 119.1 million Americans losing their private coverage. This would run contrary to your pledge to the American families about allowing them to keep the coverage of their choice.

Washington-run programs undermine market-based competition through their ability to impose price controls and shift costs to other purchasers. Forcing free market plans to compete with these government-run programs would create an unlevel playing field and inevitably doom true competition. In his March, 2009 testimony before the House Energy and Commerce Committee, Doug Elmendorf, the director of the nonpartisan Congressional Budget Office, testified that it would be "extremely difficult" to create "a system where a public plan could compete on a level playing field" against private coverage. The end result would be a federal government takeover of our healthcare system, taking decisions out of the hands of doctors and patients and placing them in the hands of a Washington bureaucracy.