Jeremy Nighohossian, Ph.D., Managing Director, was cited in an Inside Health Policy article regarding FTI’s recently published report on “Evaluating the Potential Impact of a Public Option on Minnesota’s Hospitals and Patients”.
“Stakeholders Applaud, Urge Caution As MN Moves Toward Public Option”
Summary: Key findings in the analysis, conducted by Jeremy Nighohossian, PhD, of FTI Consulting, include that because Minnesota already has a low rate of uninsurance, the option would have only a slight effect on coverage expansion, lowering the rate from an estimated 4.7% to 4.2%. About 80,000 Minnesotans would be covered by the public option, about 50,000 of whom would switch from commercial coverage, including 18,000 small business employees. The other 30,200 would come from the ranks of the uninsured, including about 13,000 undocumented residents.
After reviewing the data collected from 122 hospitals, the analysis finds that all of them would see reduced revenue under the public option, with total losses hitting about $2.3 billion over 10 years. The paper finds rural and critical access hospitals would be particularly affected, and 11 of the states 76 CAHs would operate at high risk due to the public plan.
“Given the negative effects the Public Option may generate, combined with the limited improvements it would bring to the state’s uninsured rates, it is critical for Minnesota’s policymakers to study the far-reaching consequences of creating a MinnesotaCare Public Option and to consider how this policy might compare to other mechanisms to increase health care,” the paper concludes.
Dr. Nighohossian told Inside Health Policy that FTI has not updated its report to align with the final bill’s policy regarding small business employers and will determine if an update is warranted as more information becomes available.
Quote: “We anticipate that, even with the small employer component removed, providers will still experience losses as individuals switch from private insurance to a government plan that reimburses at a much lower rate. However, if fewer individuals switch from their private to the public plan, then revenue losses may not be as great.”
Key Contacts