Sen. Charles E. Schumer (D-N.Y.) says any new insurance program run by the government as part of sweeping reforms in Washington, D.C., should follow the same rules and standards as current insurance.

Charles E. Schumer

Schumer’s proposal came May 4 after Sen. Max Baucus (D-Mont) asked his colleague for a solution in the growing debate over a private versus public health insurance program, according to the New York Times.

The goal, according to Schumer, the third-ranking member of the Senate Democratic leadership, is “a level playing field for competition” between public and private insurers, the report states.

In his proposal to the Baucus’ Senate Finance Committee, Schumer outlined several principals, the Times said:

* A public plan must be self-sustaining; it should pay claims with money generated by premiums and co-payments, not receive tax revenue or government appropriations;

* A public plan should pay more than what Medicare pays to doctors and hospitals;

* The government should not compel doctors and hospitals to join the public plan just because they currently participate in Medicare; and

* The officials who manage a public plan should be different from those regulating the insurance market, to prevent the government from being both “player and umpire.”

Schumer also said the public plan should be required to establish a reserve fund, similar to how private insurers maintain reserves for the payment of anticipated claims, the report said. The public plan should also be required to provide the same minimum benefits as private insurers.

On Wednesday (May 5), the Senate Finance Committee held its second of three roundtable discussions on the topic of “expanding health care coverage.” Among those testifying before the committee were Karen Ignagni, president and CEO of America’s Health Insurance Plans, and Scott Serota, president and CEO for Blue Cross and Blue Shield Association.