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Senator Mike Johanns by Health Care Reform Analysis

Senator Mike Johanns

Senator Mike Johanns

Senator Mike Johanns today issued the following statement regarding the release of new data by the Lewin Group, an independent research institute, analyzing the House of Representatives’ health care reform legislation:

“I am stunned by this analysis, which even when allowing for a margin of error, clearly indicates the current proposal will decimate health care as we know it in Nebraska,” Johanns said. “This is exactly why Nebraskans are worried about government-run health care. Almost seven out of ten Nebraskans who have private insurance they like should plan on losing it and getting dumped onto the government plan if this passes. And even though you have coverage, keeping doctors and hospitals open in our communities will be a struggle when the profit margins turn negative.

“The Obama Administration has promised repeatedly that those who enjoy their current plans will not lose them. This study completely unravels that promise and leads me to believe we are a long way from a workable solution.”

The analysis released recently by the Lewin Group reached a number of specific conclusions regarding the impact on health care in Nebraska. Highlights of the study are outlined below. Lewin Group study projections of the House proposal:

– Of the 1.1 million Nebraskans who currently have private insurance, approximately 701,500 (65 percent) would be transitioned onto a government-run health care program.

– 31 percent of Nebraska residents currently without health insurance would remain uninsured.

– Nebraska physicians could see their net annual income decline by $230.7 million.

–¬†An average loss in annual income of $44,953 per physician.

– Nebraska hospitals could have their net annual income fall by about $753.6 million.

–¬†Hospital total margins could drop to as low as negative-3.9 percent.