When President-elect Barack Obama presented his National health care plan, red flags went up from a myriad of sources, as was expected in light of such a transformational program. The health insurance industry still has some concerns, even though it has agreed to cover all applicants without regard to pre-existing conditions. It is the National Health Insurance Exchange that still is a significant issue with them.



Giving Americans a choice is at the root of the National Health Insurance Exchange. To be able to choose between a private versus a government backed plan is its basic tenet. The New York Times reported that incoming HHS Secretary Tom Daschle stated that the government's plan would be modeled after Medicare.

There are arguments for and against the Medicare-like plan. The insurance industry argues that the plan will underpay doctors and medical organizations for their services rendered, which would cause the private providers to raise their rates. They say that the losses they incur under the government plans must recouped. Supporters of the plan state that the competition is likely to drive down already inflated rates. The question to be asked is what is an appropriate rate for a private doctor or hospital to charge for a service, when compared to a similar government charge?

In spite of differences, it seems that President-elect Obama is keeping his word regarding bringing all parties to the table. Karen Ignagni, president of America's Health Insuranc Plans recently stated that, "A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four."

The incoming Obama Administration has already scheduled thousands of meetings to discuss reform, and all parties are welcomed.These are listening sessions. We are trying to find people who share Obamas goal of health care reform, even if they disagree on the specifics, said Stephanie Cutter, who is the spokesperson for the Obama transition to the White House.