Assessing Access and Equity Concerns under a Choose Medicare Act Public Option and a Variation That Caps Provider Payment Rates

Given the extensive evidence of racial and ethnic inequities in the health care system, it is critical to evaluate substantial changes to health care provider pricing through an equity lens. Senators Chris Murphy and Jeff Merkley's Choose Medicare Act would enable all Americans to choose to enroll in a public insurance option instead of a private insurance plan. The public option would pay providers at prices significantly below those typically paid by private insurers. Urban Institute researchers previously delineated a related "capped rates" reform that would instead limit the prices providers could charge to any private insurer. This analysis examines the implications of the Choose Medicare Act's public option and the capped rates reform to assess potential effects on racial and ethnic inequities.