Report: Insurance Rates to Soar under Senate Health Care

by Albert Milliron | October 12, 2009 at 10:48 am

595 views | 46 Recommendations | 13 comments

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.

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend Sign In or Join to post comments

Karl Gotthardt - albertacowpoke

at 12:26 on October 12th, 2009

Here is the White House Blog Post Response:

Linda Douglass of the White House Health Reform Office didn't mince words in her reaction:

"It comes on the eve of a vote that will reduce the industry's profits," Douglass told TPMDC. "It is hard to take it seriously. The analysis completely ignores critical policies will lower costs for those who have insurance, expand coverage and provide affordable health insurance options to millions of Americans who are priced out of today's health insurance market or are locked out by unfair insurance company practices."

Hugh Askew

at 15:38 on October 12th, 2009

"It comes on the eve of a vote that will reduce the industry's profits," Douglass told TPMDC. "It is hard to take it seriously.

It is hard to take seriously a spokeswoman that slams the report, without she should give some backup FACTS for her statement, in lieu of a rehash of talking points.

nanute

at 12:26 on October 12th, 2009

And now for a different take on who is behind this charade, here is a quote from an article by Susie Madrack:

Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.

Administration officials, who spent much of the spring and summer wooing the insurers, questioned the timing and authorship of the report, which was paid for by America's Health Insurance Plans (AHIP), an industry trade group.

"Those guys specialize in tax shelters," said Nancy-Ann DeParle, director of the White House Office of Health Reform. "Clearly this is not their area of expertise."

Yes, not only is it not their area of expertise, the brand carries with them a history of conflicts of interest and even fraud. As recently as 2007, PwC paid $225 million to settle a class-action lawsuit brought by shareholders of Tyco International Ltd. over a multibillion-dollar accounting fraud.

One thing is for sure: health care premiums will be going up, regardless of what transpires on the reform front.

Albert Milliron

at 15:12 on October 12th, 2009

Thanks for taking the time to comment on this story

Karl Gotthardt - albertacowpoke

at 12:36 on October 12th, 2009

I think if everyone were honest, they would admit that rising costs in health care are inevitable, regardless of option. The question is how is it best administered and how do you make sure each and every American is covered.

The reason health care reform is on a teeter totter is because nobody is telling the whole truth. I find it amazing that Congress has refused to post the proposed bill on line prior to a vote. So much for full disclosure.

I think this bill and its impending health care reform is important enough for the well-being of America, that the committee deliberations should have been broadcast.

Albert Milliron

at 15:12 on October 12th, 2009

It is interesting that President Obama said he would allow all bills to be available 72 hours prior to a vote. That is a politifact = False. Pelosi said she would drain the swamp and have the most ethical congress in history... most people in America do not approve of the way congress is handling things. So for the WH to come out an criticize the health insurance industry.. who BTW has profit margins in the single digits (called windfall profits by Pelosi), is comical to me. It is like Manson calling Casey a killer.

I agree, that insurance premiums will go up no matter the outcome is in DC. Gold is now at 1K dollars, the dollars value has dropped significantly. Prices for products and services will go up based on that. When Pres. Obama prints tons of money, every dollars value diminishes. This report states that indivdual insurance will increase by a much larger margin than previous estimates.

Rory Cripps

at 17:31 on October 12th, 2009

ACP:

I think this bill and its impending health care reform is important enough for the well-being of America, that the committee deliberations should have been broadcast.

I couldn't agree more! This whole health care reform charade is simply a partisan effort on the part of partisan politicians to exercise their will over American citizens. The Obama Administration and congressional Democrats will do virtually anything to get some form of health care legislation passed. They are obsessed with the passage of a health care reform bill--any bill as long as they can claim credit for it! None of them have taken the time to gather as much facts and information as they can in order to determine the economic and financial ramifications of health care reform nor have they even given consideration to viable options. Again: They are obsessed with the passage of a bill-any bill no matter what it's ultimate effect on the American people and the future of their country. Most of them had no idea what the original HR3200 bill contained. Yet the Democrats would have passed that bill in a heartbeat had it not been for the flak they received from an outraged American public. The facts are that 80% of the American people that have private health care coverage are satisfied with their coverage in spite of escalating costs and most of them don't believe that passage of a government plan will lower costs or not negatively affect the quality and quantity of their health care. The bottom line is simply this: Americans are being asked to put their faith in a strictly partisan health care bill by friends of a presidential administration that is losing more and more trust on the part of the American people everyday. It's no wonder that the Democratic Party wants to get a health care bill passed as soon as possible . . . .

Karl Gotthardt - albertacowpoke

at 17:37 on October 12th, 2009

Apparently the vote will take in committee tomorrow without the bill being written. It still has a bunch of outstanding amendments.

René

at 15:48 on October 12th, 2009

Yikes! but isn't the price increases wht this insidious bill is all about?

Dastards!

jefhow22

at 15:56 on October 12th, 2009

My health insurance premiums along with my Dr. visits and prescription co-pays have just recently went up...like the banks and credit card industry's they are already lining their pockets in anticipation of striking more gold...

158

at 18:40 on October 12th, 2009

This health plan is shaping up as a disaster.

Albert Milliron

at 12:47 on October 13th, 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.

Russ (not verified)

at 17:29 on December 28th, 2009

Like in Florida as soon as the insurance companies were no longer able to question pre_existing conditions. The preimums doubled. The insurance companys will now have to assume all there customers have a prexisting conditions and rates will skyrocket much more than had that part of bill been left out..Us oldtimers are screwed.