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Health Care Reform: New House Agreement Authorizes Public Plans to Negotiate Rates

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Federal health care reform legislation moved forward last week when House Speaker Nancy Pelosi (D-CA) and the House Energy and Commerce Committee reached an agreement that seeks to cut $100 million from the cost of the bill, H.R. 3200.

A coalition of moderate Democrats, including Rep. Zack Space (D-OH), have been urging Congressional leaders to adopt a public health plan option with payment rates not tied to Medicare’s rates, but negotiated with health care providers like the rates of private plans. Under the agreement reached in the House last week, public plans will be authorized to negotiate rates with providers. Also, more small employers would be exempt from the employer health benefits mandate than in the original version of the bill. The agreement also would allow states to create nonprofit, cooperative insurance plans to compete with both private carriers and a new federal health plan.

At Space’s request, OHA is facilitating periodic conference calls between the legislator and his constituent hospitals to share his views on health care reform bill and hear their concerns. OHA appreciates the health care reform efforts being made by Space and others in the Ohio congressional delegation on behalf of hospitals. (Jonathan Archey)


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