How The Congressional Budget Office sees reform of the health insurance

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How The Congressional Budget Office sees reform of the health insurance -

money So far, one of the points sharpest debate when it comes to health care reform and health insurance is whether we should have a public-private health insurance plan to compete with other plans.

Well, it is a point of debate, but ultimately likely to occur with lawmakers advocating enjoying a hefty majority in Congress and an ally in the White House.

But would a public-private plan means for the federal budget?

The Congressional Office Budget recently published a report on how the major reforms could affect the government's portfolio, reported Washington Post

in general, CBO examined the health reform in two ways :. the government would have strong control over the industry of health insurance, or private system maintains its independence with a public option added to the competition.

If the government has maintained strict control over the industry, then it would be considered by the CBO as a government program that belongs in the federal budget, CBO Director Douglas Elmendorf wrote.

on the other hand, said Elmendorf, an essentially private system of health insurance is not part of the budget.

And as long as people have a wide range of choice - and the government has not been in charge of collecting premiums for the public-private option - then a mandate for all Americans buy health insurance could not be considered a form of federal tax

Furthermore, the. premium collection would not be considered a federal income in a market dominated by private insurance.

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