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MSNBCThe National Federation of Independent Business opposes including a public plan in the exchange. It fears a government-run plan would undercut private insurers and end up leading to less competition in the insurance marketplace.
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Some small-business owners, however, support a public plan. David Borris, owner of Hel’s Kitchen Catering in Northbrook, Ill., told the House Ways and Means Committee April 22 that small businesses “already have enough bad choices – high-deductible, low-benefit plans that are barely worth the paper they’re written on.”
“For businesses that don’t have good options now, offer the choice of a public health insurance plan,” he said. “This will give us greater bargaining power and encourage competition among insurers to make costs affordable.”
A study by the Lewin Group for the Commonwealth Fund estimates that a public plan could offer small businesses insurance that is at least 9 percent cheaper than current small-business policies. Savings could range up to 30 percent if the public plan pays Medicare rates to providers and Congress makes other reforms to the health-care system, the study concluded.
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