Report: Insurance Rates to Soar under Senate Health Care
By Albert N. Milliron, Editor, Politisite.com
The Congressional Budget Office (CBO) recently reported that the Senate Health Care Bill would be cost nearly 850 Billion dollars and be deficit neutral. How is that possible?
First, the Bill will not insure 20 million Americans. President Obama said he would not sign anything that did not insure all Americans. Interesting how he is now touting this bill despite the 20 million Americans being put on the chopping block. If these people were included in the bill, the price tag would be closer to one trillion dollars.
Second, deficit neutral only applies to the bill with the 20 million still uninsured, add them and the picture appears a bit different. Include them and the Bill goes into the Red. Additionally, a New report fills in the blanks how a huge government program can be deficit neutral, Taxpayers end up getting hit with higher premiums to fill in the gaps. In fact, the report relates that families could see premium hikes as much as $4000.00 per year.
Over the weekend, America’s Health Insurance Plans circulated a study it commissioned from Price Waterhouse Coopers. In a memo to AHIP members, reproduced here, president Karen Ignani explained its significance:The report makes clear that several major provisions in the current legislative proposal will cause health care costs to increase far faster and higher than they would under the current system.
The report finds that the proposal “will increase premiums above what they would increase under the current system for both individual and family coverage in all four market segments for every year from 2010-2019. For example, the analysis shows that the cost of the average family policy is approximately
$12,300 today and will rise to: –$15,500 in 2013 under current law and to $17,200 if these provisions are implemented.
–$18,400 in 2016 under current law and to $21,300 if these provisions are implemented.
–$21,900 in 2019 under current law and to $25,900 if these provisions are implemented.
So while the Bill is being passed off as meeting President Obama’s Criteria, It is missing two key components. All people in America to be covered and be deficit neutral. Bottom line here is that the bill is window dressing to get something passed. The brunt of the cost will be carried by the American people. Not by a direct tax, but by insurance companies having to increase premiums on families to meet cost estimates. This bill will cause business and individuals to drop their private insurance thus making the CBO estimates erroneous.
CBS Radio News White House Correspondent, Mark Knoller, is reporting, White House spokesman Reid Cherlin calls study "distorted & flawed ... and cannot be taken seriously." Cherlin cites AARP reaction that the study "is not worth the paper it's written on." I remember the criticism the White House dished out to the CBO when it did not agree with their estimates. Now it seems the White House is embracing the CBO and using their estimate at recent news conferences.
The Senate Health Care plan will be voted on in committee Tuesday October 13, 2009 - Up Date: The Senate Finance Committee approved its version of health-care reform by a 14-9 vote. One Republican, Senator Snowe of Maine voted for the Plan.
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Columbia, South Carolina, United States