CI Cigna Group

By Stephanie Armour and Tarini Parti 

WASHINGTON -- Democratic presidential candidate Sen. Kamala Harris (D., Calif.) released a plan Monday to reshape the U.S. health-care system by transforming it over 10 years to a federal one that would still allow a limited role for private insurers.

Ms. Harris, who has been criticized by some more progressive members of her party for her lack of clarity on her support for Medicare for All, released the plan a day before the start of the second round of Democratic presidential debates, where health care is expected to be a key topic. In the last debate series in June, Ms. Harris raised her hand when candidates were asked if they would abolish private health insurance, but she said the next day she had misunderstood the question.

Her version of Medicare for All would upend the current system for a government-run health-care program that would cover a robust set of benefits, from long-term care to mental health and hospitalization. But private health plans such as those from Cigna and Aetna Inc. could offer Medicare Advantage -- in essence, plans with enhanced benefits.

She also would move people into the program over 10 years instead of the four that Sen. Bernie Sanders (I., Vt.) has outlined in his Medicare for All proposal. Ms. Harris's plan proposes to raise funding revenue with taxes on higher-income families and Wall Street trades and without raising taxes on the middle class.

"Medicare works. It's popular," Ms. Harris wrote in a post scheduled to appear Monday morning on the website Medium. "Seniors transition into it every day, and people keep their doctors and get care at a lower cost. Let's not lose sight that we have a Medicare system that's already working."

Democrats fared well in the 2018 midterm elections by portraying the party as the defender of the Affordable Care Act in the face of GOP attempts to repeal it. Progressive Democrats are pushing for Medicare for All, without an option for private insurance, while centrists argue ripping up the current U.S. health system is overly aggressive and risks alienating voters.

Ms. Harris's plan would permit Medicare Advantage, which are plans offered by private carriers that contract with Medicare. But it would impose new federal regulations aimed at improving plan quality, cost and access though her campaign didn't disclose details.

Employers would pay into either Medicare for All or Medicare Advantage during the transition period to get coverage for their employees. Medicare Advantage, which has been growing in the last decade, now accounts for one-third of the 64 million people covered by Medicare, according to the Kaiser Family Foundation. About one fifth of Medicare Advantage enrollees are in an employer- or union-sponsored group plan.

This would be the primary role for private health insurers. Employers would pay into the new federal program, and workers would get their coverage from the expanded Medicare program. Many private insurers currently offer these Medicare Advantage plans. The plans they would offer under Ms. Harris's health system would be subject to new requirements and conditions. Currently, some employers offer Medicare Advantage to older workers; Medicare is now generally a program for people age 65 and older.

The plan aims to expand health coverage in the U.S., Ms. Harris said. Under Medicare for All, consumers have out-of-pocket payments only for prescription drugs. She didn't release details of how her transition period would work.

Write to Stephanie Armour at stephanie.armour@wsj.com and Tarini Parti at Tarini.Parti@wsj.com

(END) Dow Jones Newswires

July 29, 2019 06:14 ET (10:14 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.