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Study: Biden’s Healthcare Plan Would Close 52 Iowa Hospitals

The Iowa Cedar Rapids Gazette wrote an analysis on Tuesday that revealed that up to 52 rural Iowa hospitals could close under Joe Biden’s public option plan.

(Photo by Sean Rayford/Getty Images)

The Iowa Cedar Rapids Gazette wrote an analysis on Tuesday that revealed that up to 52 rural Iowa hospitals could close under Joe Biden’s public option plan.

The analysis cited a study by the Partnership for America’s Health Care Future and conducted by Navigant Consulting, which found that “adding a government-run insurance plan could decimate rural hospitals.” The analysis claimed that “rural hospitals could experience a loss of more than $476 million dollars under a public health insurance proposal.”

Former Vice President Joe Biden’s healthcare plan would create a “public option,” which would allow the government health insurance option to compete with private insurance on the Obamacare exchanges.

The study suggested that in order to prevent hospitals from closing under the public option system, Medicare would have to increase its payments to hospitals between 40 to 60 percent above current Medicare rates, which could cost between $4 and 25 billion annually depending on how many employers move employees onto the public option.