America’s Health Insurance Plans commissioned a study from PriceWaterhouseCoopers recently on the Baucus health bill and it shows many things that we all expected and feared would happen. The cost of insurance will go waaaaay up….by about 18% on average ON TOP of the expected inflation.
- Health reform could have a significant impact on the cost of private health insurance coverage.
- There are four provisions included in the Senate Finance Committee proposal that could increase private health insurance premiums above the levels projected under current law:
- A new tax on high-cost health care plans,
- Insurance market reforms coupled with a weak coverage requirement,
- Cost-shifting as a result of cuts to Medicare
- and New taxes on several health care sectors.
- The overall impact of these provisions will be to increase the cost of private insurance coverage for individuals, families, and businesses above what these costs would be in the absence of reform.
- On average, the cost of private health insurance coverage will increase:
- 26 percent between 2009 and 2013 under the current system and by 40 percent during this same period if these four provisions are implemented.
- 50 percent between 2009 and 2016 under the current system and by 73 percent during this same period if these four provisions are implemented.
- 79 percent between 2009 and 2019 under the current system and by 111 percent during this same period if these four provisions are implemented.
America’s Health Insurance Plans asked PricewaterhouseCoopers to check out the impact of four components in the Baucus bill:
- Insurance market reforms and consumer protections that would raise health insurance premiums for individuals and families if the reforms are not coupled with an effective coverage requirement.
- An excise tax on employer-sponsored high value health plans (or “Cadillac plans”) that in a few years could also raise premiums for some moderate value plans.
- Cuts in payment rates in public programs that could increase cost shifting to private sector businesses and consumers. These changes are expected to more than offset the potential reduction in cost shifting resulting from providing coverage to the uninsured.
- New taxes on health sector entities that are likely to be passed through to consumers.
And found the following:
This analysis shows that the cost of the average family coverage is approximately $12,300 today and could be expected to increase to approximately:
- $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.
This analysis shows that the cost of the average single coverage is $4,600 today and could be expected to increase to:
- $5,800 in 2013 under current law and to $6,400 if these provisions are implemented.
- $6,900 in 2016 under current law and to $7,900 if these provisions are implemented.
- $8,200 in 2019 under current law and to $9,700 if these provisions are implemented.
…by 2019 the cost of single coverage is expected to increase by $1,500 more than it would under the current system and the cost of family coverage is expected to increase by $4,000 more than it would under the current system. This amounts to an additional 18 percent increase in premiums by 2019. The overall 18 percent increase is a composite of increases by market segment as follows:
- 49% increase for the non-group (individual) market;
- 28% increase for small employers (those firms with fewer than 50 employees);
- 11% increase for large employers with insured coverage; and,
- 9% increase for self-insured employers.
The overall impact of these provisions will be to increase the cost of private health insurance coverage for individuals, families, and businesses. The net impact of these increases on households would include the impact of these increases and the new subsidies provided under the bill.
You can check out the whole report here.
Senator Barrasso visited Fox News this morning and discussed the findings:
Liberal sites are crying about the study complaining that the study doesn’t take into consideration the subsidies:
But this accounting leaves out some pretty big things, starting with the subsidies that would help people buy insurance.~~~
Now, the subsidies are not available to everybody, since they phase out with income and are only available through the insurance exchanges. As a result, people with higher incomes really would face higher premiums.
…PWC wanted to take a look at the actual cost of premiums, not the impact on subsidies, which is a political rather than economic question. The subsidies will still be in place, but they will apply to policies that cost a lot more than Baucus projected.
How much more? Take a look at this analysis from page 6 of the report:
PwC also examined the impact of the excise tax on the mandated plans expected to be offered under the state health insurance exchanges detailed in the Senate Finance Committee Bill. We estimate that in many metropolitan areas, which tend to have higher than average medical costs, the lowest option plan (Bronze Plan) would be considered a “Cadillac plan” as early as 2016. By 2016 at least one of the mandated plans will be considered a “Cadillac plan” and be subject to the 40 percent excise tax in 17 of 50 states. By 2019 at least one of the mandated plans will be considered a “Cadillac plan” and be subject to the 40 percent excise tax in 24 of 50 states.
Barasso didn’t get fooled by the subsidy red herring, either. He notes that the subsidies don’t start until 2013, but the taxes and fees kick in immediately. That will start the price pressure on premiums next year, not in 2013, and it will actually make the problem of uninsured worse in the short run.
Besides, what was the rationale for the excise tax on Cadillac plans in the first place? It intended to discourage plans that allowed for overuse of the system. By the end of its first decade, the Baucus plan makes most plans subject to that tax, which means that there is no real penalty for offering them or buying them. It transforms quickly into another general industry tax and does nothing to encourage rational use of the system.
They want people to think that these taxes will only affect the rich, but by the time this is all through anyone making 25 grand will be considered rich by the Obama government. But sure, there will be people who benefit from the plan. Those who meet the standards for subsidies or those who get the government plan will see prices reduced at the cost of all the rest of us paying more. And still they estimate that 25 million will remain uninsured by this Baucus plan.
And remember, Obama said if we dig the plan we have currently we can keep it…he leaves out a key point tho:
The government would also levy more payroll taxes. Included in a footnote in the CBO report is the revelation that the government expects to raise an extra $83 billion in payroll taxes in the next 10 years thanks to the higher taxable wages they predict employers will offer in place of non-taxable health care benefits.
A government “reform” that could cost us more? Is that really possible? Who knew?
So, an insurance lobbyist commissions a study that finds health insurance will increase more under than reforms… that’s a surprise. So I get that trying to cover the uninsured will cost more, but what I can’t figure out is why are my insurance premiums increasing at their current rate? Hell, I now pay $30 for prescriptions when just 5 years ago I was paying $15. That’s besides the $2800 I had to pay because my HMO wouldn’t cover an emergency room visit due to heart pains… what’s up with that?
Government is already intervening in the market and driving prices up, even without this major new initiative. That’s a big reason why prices are increasing. Government is mandating coverage, restricting premium differentials for risk, and reducing competition. ObamaCare will make all this worse.
ObamaCare is like a pyromaniac starting a fire in your house, then responding to your alarm by offering to douse it with gasoline.
I guess hearing this Insurance Industry makes it true. Wow! I knew y’all were gulliable. But who would have thought y’all were stupid enough to believe it coming from them. But; I’m not surprised. I’m sure when the automakers tell y’all that cars that get 50 miles per gallon is bad for the enviroment y’all will believe them as well.
That’s the best ya got, spin hater? If you don’t like the messenger…..
Figures lie… liars figure. Spin spin spin. You may want to be curious enough to actually look at the study before coming out of prozac induced stupors for blind partisan support. Afterall, if the WH figures it’s important enough to come to the Congressional committee’s defense using the bully pulpit… there may be something to it. What. Not a curious bone in your body?
And I can assume that when the government tells you that you can keep your doctor, keep your insurance, taxes won’t go up to pay for this and won’t add to the deficit, and illegal’s won’t be covered, you believe that instead?
Why do I get the feeling FA is seeing some of those “posters” from the new WH “anti-conservative/pro O” web office? Geeeezeee!
OK, no real increase in Qualified Doctors/Care Providers, no increase in Care Providing Facilities, Add 20 to 40 million folks to receive care other than the Emergency Room cases and no increase in cost, no additional taxes to cover it and no rationing of care or triage according to age or illness or cost of treatment?
Am I to believe any of this?
Is Someone lying to the Taxpayers?
Is it the Pretender in Chief, the Parliament of Whores in DC, the newly appointed Marxist Czars that were not vetted by the Senate, the Wicked Witch from Kansas that fully expects Taxpayers to pay for Abortions? The same Folks that will borrow and spend the Nation into Prosperity and Treated ADM. Mullen, GEN. Petraeus and GEN. McChrystal like messenger boys when they told them that Our Troops in Afghanistan were getting hammered by a resurgent Taliban and needed reinforcements NOW? (!!!!!) With New and Improved ROE that allow Our Troops to request Air and Artillery support but wait for a show of hands on who are Shooters , who are Supporters hauling Ammunition but not Combatants in a REAL Sense???
Just wait until those of You that rely on coal fired Power for Electricity come under the Obama’s Cap and Tax deal. Killing Energy Production in the US is next on the Agenda. Believe it.
I am Retired Military, ranching in freezin Montana, have mobile internet and radio 18 miles out from the house and am out on station at the most far bunkhouse/cabin on property. Been out on wind blown range on horseback most of the day at below 32F temps.
I scraped real Bull Crap off my boots today several times but none as foul as what the Obama Rogue Regime has Baghdad Bob Gibbs spouting or the other Liars in DC are telling You Daily.
Be very Afraid America. Someone is Lying to You and It is not Me.
Nobel should go back to making explosives and get out of the Cracker Jack Prize business.
Let Rio have the Olympics. Utah is still paying off the Debt from the SLC Winter Games.
Sorry to get Off Topic but the Nation I fought for is headed over a cliff right now. I am not Party Affiliated but neither Party is serving America well… Wake Up America!
So they told us what everyone with a brain larger than a BB shot already knew. Never trust a democrat and never speak to a libera, they lie at the drop of a hat. They all have an incurable mental illness and it’s evidently catching since they spread it among themselves.
By the way trooper. The democrats just put a stop to over 75 mining premits and stopped a bunch of oil drilling. Glad I live in coal country and own part of a farm with several hundred tons of coal that is uable for landowners and family. Been looking for a good wood/coal stove this week. May opt for the cooktop type so I can continue to eat. I can trap and snare if they take away my guns and know how to bring the fish up (waste a lot) if they stop fishing as was in the news today. I’ll feel sorry for the city folks in their hunger and cold, not.
Guess that’s what I get for trying to edit! LOL I’ll go one step further Scrapiron, Don’t trust government, period. What was it that Reagan said? The scariest 9 words that you could ever here: I’m from the government, and I’m here to help. THEY DO NOT WANT TO HELP! It’s all about power.
Hey ya’ll, I guess us dumb hayseed conservatives forgot that Obama made the Insurance Companies one of his new boogiemen. Fox News, Bankers, Insurance Companies, all bad. Obama good.
The dirty little secret is that Obama KNOWS that the current Dem plans will make insurance more expensive. Just the opposite of what he said his “reforms” were intended to do.
It’s fine with him if that happens as it will be yet another incentive to move to the government plan. Which won’t be cheaper than what you have now with private plans but may be a few dollars cheaper, initially, than the cost of private plans loaded with Obama’s government mandates under these “reforms.”
But if anyone thinks ObamaCare will lower the cost of their health care they are a FOOL!
Just imagine the number of employers that are going to scap their insurance plans since they contribute to them also. (they pay a percentage and the employee pays a percentage)
All the employer has to do then is to say if you want coverage, go down and stand in line and get your own from Obama and company.
I’d like to say that I’ve had experience with the way O-care is going to work. I have a daughter that had to see a specialist. He practiced at our County Hospital. We got a blue card with 9 AM, Monday, Room 502. we showed up at 8:45 that morning and found Room 502. We opened the door and there sat 500 people with little blue cards that all said 9 AM, Monday, Room 502. We sat in that room from 9 AM until nearly 4 PM before we got to see the Doctor. That’s an entire day wasted for a 15 minute doctor visit.
In that same Hospital there’s an unspoken rule. If you have ANYTHING wrong with you and you need immediate treatment, it’s better if you shoot yourself before heading to the hospital. Gun shooting victims ALWAYS get first treatment.
Thanks for the opportunity for my morning rant.
A clear case of the insurance lobby overplaying their hand. The public option, if it wasn’t already, is now certain to be in the bill.
What you fail to understand about this report is that it is not intended to kill reform, but to assist the insurance lobby to negotiate for more mandates in the final bill, to protect insurance company profits.
Of course, that’s something that was already negotiated downward by the Republicans on the finance committee, but lets not let facts get in the way of anything that might be critical to the cause of the other side.
As a non US resident, I can’t see why the blindingly obvious compromise isn’t being sought. You don’t currently have a national health infrastructure, with buildings, doctors, nurses etc. but you do have a private sector with those resources… You could just run it the other way round from how we do it.
A lot of the consultants in our National Health Service do private work as well. In fact the vast majority of private consultants here started out in the NHS and still work for it. You can choose to go private if you want and can afford, but if you have a pre-existing condition for example, you go National Health because it won’t be an issue.
And as for cost, you might think you’re paying more than your fare share when you’re relatively young and healthy, but the shoe’s on the other foot when you get old and suffer infirmity. What goes around comes around.
Robert Reich (the lawn gnome) being honest about what he wants from a healthvcare program.
Death. And a lot of it.
Culling the herd
Senate Finance Committee Chairman Max Baucus, wants to include a version of a government option called a co-op owned by insured members. What a wonderful idea says Mike Oliphant whom manages Utah health insurance plans for http://www.benefitsmanager.net/utah-group-health-insurance.htm . This may encourage competition from private health insurance carriers. But I fear it will fail ultimately if there is no TORT reform because the same liability costs that plague medical professionals and health insurance carriers will be like a fast cancer growth within the co-op plan. A government option wouldnâ��t allow legal suite against the plan but will with medical providers. Doesnâ��t anyone see that we need TORT reform to protect the cost outcome? See what Utah has done with health care reform http://www.ahealthinsurancequote.com/reform.html.