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A capped-rate policy would limit the payment rates paid by all insurers — not just control rates paid by a public option alone.

Discussion of alternatives to strengthen and improve the Affordable Care Act is heating up as the Biden Administration begins implementing its policies. The Urban Institute analyzed two possible options:

A public option, which is a government-run program providing insurance that could be implemented in the nongroup or both the nongroup and employer markets, would generally set provider payment rates below commercial rates and could reduce government subsidy costs substantially.

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