CEOs of major corporations said they oppose Senate Majority Leader Harry Reid's decision to include a public-option health plan in the Senate healthcare overhaul bill, saying it takes reform “in the wrong direction.”
Business leaders oppose public option
The Business Roundtable, whose members include executives at Verizon Communications, Wal-Mart, General Electric Co., Johnson & Johnson, Microsoft Corp., McKesson Corp. and PepsiCo, said the public option will only hasten the cost-shifting to businesses, providers and insurers.
“The public plan will not only shrink the pool of individuals covered by private insurance, but it will siphon off those most needed to create balanced risk pools,” John Castellani, president of the Business Roundtable, whose members employ more than 12 million people, said in a news release.
The group also predicted the public-option plan would reimburse providers at a below-market rate to keep costs low, and have no incentive to implement new innovations to improve quality of care.
Reid said earlier this week that the Senate bill will include a government-run health plan, known as a public option, as an alternative to private insurance. States could decide to opt out of offering the public option under Reid's proposal. House Democratic leaders have also included a public option in their reform bills.
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