Baucus bill will increase health insurance premiums

[toomuchtime_]

Late Sunday, the industry trade group America's Health Insurance Plans sent its member companies a new accounting firm study that projects the legislation would add $1,700 a year to the cost of family coverage in 2013, when most of the major provisions in the bill would be in effect.

Premiums for a single person would go up by $600 more than would be the case without the legislation, the PricewaterhouseCoopers analysis concluded in the study commissioned by the insurance group.

"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," Karen Ignagni, the top industry lobbyist in Washington, wrote in a memo to insurance company CEOs.

The study projected that in 2019, family premiums could be $4,000 higher and individual premiums could be $1,500 higher.

Baucus spokesman Mulhauser said the study is "seriously flawed" because it doesn't take into account provisions in the legislation that would lower the cost of coverage, such as tax credits to help people buy private insurance, protections for current policies and administrative savings from a revamped marketplace.

White House health care spokeswoman Linda Douglass concurred. "This is an insurance industry analysis that is designed to reach a conclusion which benefits the industry, and does not represent what the bill does," she said.

The Baucus plan faces a final committee vote on Tuesday. It got a boost last week when the Congressional Budget Office estimated it would cover 94 percent of eligible Americans while reducing the federal deficit.

But the PricewaterhouseCoopers analysis attempted to get at a different issue — costs for privately insured individuals.

It concluded that a combination of factors in the bill — and decisions by lawmakers as they amended it — would raise costs.

The chief reason, said the report, is a decision by lawmakers to weaken proposed penalties for failing to get health insurance. The bill would require insurers to take all applicants, doing away with denials for pre-existing health problems. In return, all Americans would be required to carry coverage, either through an employer or a government program, or by buying it themselves.

But the CBO estimated that even with new federal subsidies, some 17 million Americans would still be unable to afford health insurance. Faced with that affordability problem, senators opted to ease the fines for going without coverage from the levels Baucus originally proposed. The industry says that will only let people postpone getting coverage until they get sick.

Other factors leading to higher costs include a new tax on high-cost health insurance plans, cuts in Medicare payments to hospitals and doctors, and a series of new taxes on insurers and other health care industries, the report said.

"Health reform could have a significant impact on the cost of private health insurance coverage," it concluded.

Insurers played a major role in defeating then-President Bill Clinton's health care plan in the 1990s. Sunday, the industry stopped short of signaling all-out opposition. "We will continue to work with policymakers in support of workable bipartisan reform," Ignagni said in her memo.

The Associated Press: Insurers mount attack against health reform

 

[Meister]

This is what happens when the government get their tentacles in the private sector. Again it just shows that over time there will be no other option....just the "fed insurance".

 

[Political Junky]

Late Sunday, the industry trade group America's Health Insurance Plans sent its member companies a new accounting firm study that projects the legislation would add $1,700 a year to the cost of family coverage in 2013, when most of the major provisions in the bill would be in effect.

Premiums for a single person would go up by $600 more than would be the case without the legislation, the PricewaterhouseCoopers analysis concluded in the study commissioned by the insurance group.

"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," Karen Ignagni, the top industry lobbyist in Washington, wrote in a memo to insurance company CEOs.

The study projected that in 2019, family premiums could be $4,000 higher and individual premiums could be $1,500 higher.

Baucus spokesman Mulhauser said the study is "seriously flawed" because it doesn't take into account provisions in the legislation that would lower the cost of coverage, such as tax credits to help people buy private insurance, protections for current policies and administrative savings from a revamped marketplace.

White House health care spokeswoman Linda Douglass concurred. "This is an insurance industry analysis that is designed to reach a conclusion which benefits the industry, and does not represent what the bill does," she said.

The Baucus plan faces a final committee vote on Tuesday. It got a boost last week when the Congressional Budget Office estimated it would cover 94 percent of eligible Americans while reducing the federal deficit.

But the PricewaterhouseCoopers analysis attempted to get at a different issue — costs for privately insured individuals.

It concluded that a combination of factors in the bill — and decisions by lawmakers as they amended it — would raise costs.

The chief reason, said the report, is a decision by lawmakers to weaken proposed penalties for failing to get health insurance. The bill would require insurers to take all applicants, doing away with denials for pre-existing health problems. In return, all Americans would be required to carry coverage, either through an employer or a government program, or by buying it themselves.

But the CBO estimated that even with new federal subsidies, some 17 million Americans would still be unable to afford health insurance. Faced with that affordability problem, senators opted to ease the fines for going without coverage from the levels Baucus originally proposed. The industry says that will only let people postpone getting coverage until they get sick.

Other factors leading to higher costs include a new tax on high-cost health insurance plans, cuts in Medicare payments to hospitals and doctors, and a series of new taxes on insurers and other health care industries, the report said.

"Health reform could have a significant impact on the cost of private health insurance coverage," it concluded.

Insurers played a major role in defeating then-President Bill Clinton's health care plan in the 1990s. Sunday, the industry stopped short of signaling all-out opposition. "We will continue to work with policymakers in support of workable bipartisan reform," Ignagni said in her memo.

The Associated Press: Insurers mount attack against health reform

You obviously will believe everything the insurance companies tell you, including that they will take care of you.

 

[Meister]

Late Sunday, the industry trade group America's Health Insurance Plans sent its member companies a new accounting firm study that projects the legislation would add $1,700 a year to the cost of family coverage in 2013, when most of the major provisions in the bill would be in effect.

Premiums for a single person would go up by $600 more than would be the case without the legislation, the PricewaterhouseCoopers analysis concluded in the study commissioned by the insurance group.

"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," Karen Ignagni, the top industry lobbyist in Washington, wrote in a memo to insurance company CEOs.

The study projected that in 2019, family premiums could be $4,000 higher and individual premiums could be $1,500 higher.

Baucus spokesman Mulhauser said the study is "seriously flawed" because it doesn't take into account provisions in the legislation that would lower the cost of coverage, such as tax credits to help people buy private insurance, protections for current policies and administrative savings from a revamped marketplace.

White House health care spokeswoman Linda Douglass concurred. "This is an insurance industry analysis that is designed to reach a conclusion which benefits the industry, and does not represent what the bill does," she said.

The Baucus plan faces a final committee vote on Tuesday. It got a boost last week when the Congressional Budget Office estimated it would cover 94 percent of eligible Americans while reducing the federal deficit.

But the PricewaterhouseCoopers analysis attempted to get at a different issue — costs for privately insured individuals.

It concluded that a combination of factors in the bill — and decisions by lawmakers as they amended it — would raise costs.

The chief reason, said the report, is a decision by lawmakers to weaken proposed penalties for failing to get health insurance. The bill would require insurers to take all applicants, doing away with denials for pre-existing health problems. In return, all Americans would be required to carry coverage, either through an employer or a government program, or by buying it themselves.

But the CBO estimated that even with new federal subsidies, some 17 million Americans would still be unable to afford health insurance. Faced with that affordability problem, senators opted to ease the fines for going without coverage from the levels Baucus originally proposed. The industry says that will only let people postpone getting coverage until they get sick.

Other factors leading to higher costs include a new tax on high-cost health insurance plans, cuts in Medicare payments to hospitals and doctors, and a series of new taxes on insurers and other health care industries, the report said.

"Health reform could have a significant impact on the cost of private health insurance coverage," it concluded.

Insurers played a major role in defeating then-President Bill Clinton's health care plan in the 1990s. Sunday, the industry stopped short of signaling all-out opposition. "We will continue to work with policymakers in support of workable bipartisan reform," Ignagni said in her memo.

The Associated Press: Insurers mount attack against health reform

You obviously will believe everything the insurance companies tell you, including that they will take care of you.

You obviously will believe everything the government tells you, including that they will take care of you. just sayin....

 

[JakeStarkey]

Just saying, Meister, you can vote for your government, but you can't vote for the health insurance industry who is doing its darned level best to take every dollar it can while giving as little in return as possible. Yes, this industry needs to be regulated.

 

[Political Junky]

UPDATE 1-White House blasts health insurance sector report | Reuters

UPDATE 1-White House blasts health insurance sector report
Mon Oct 12, 2009 3:46pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+]
More Business & Investing News...
(For coverage of U.S. healthcare reform, click on [nN20512341])

* White House dismisses report, says timed for Senate vote

* Report says many young people may not buy insurance

* Insurers' lobby: other sectors need to do "fair share" (Adds comments from insurers, consumer groups, Baucus spokesman)

By Steve Holland and David Alexander

WASHINGTON, Oct 12 (Reuters) - The White House on Monday blasted a report from the health insurance industry that said Senate healthcare legislation would lead to increases in annual insurance premiums of as much as $4,000 by 2019.

The report for the industry trade group America's Health Insurance Plans represented a shot across the bow at Democratic plans to overhaul the $2.5 trillion healthcare system as President Barack Obama has been gaining momentum on the issue.

A top goal of Obama in seeking to revamp healthcare is to rein in costs that have soared in recent decades. The report, prepared by consultants PricewaterhouseCoopers and posted on the industry group's website over the weekend, said costs would increase for Americans rather than decline.

"Health reform could have a significant impact on the cost of private health insurance coverage," the report concluded.

The release of the report comes as the Senate Finance Committee plans to vote on Tuesday on its healthcare plan after budget analysts gave the bill a rosy report card, estimating it would meet Obama's goal of reducing the budget deficit over 10 years.

But the insurance group, which represents Aetna Inc (AET.N), Cigna Corp (CI.N), UnitedHealth Group Inc (UNH.N), WellPoint Inc (WLP.N) and others, defended the findings, saying lawmakers have abandoned any effort to slow healthcare costs.

Instead, the bill looks to raise money from insurance companies and, ultimately consumers and employers, to help pay for healthcare costs that outpace wages each year, the group's president Karen Ignagni told reporters.

"Because we don't see comprehensive cost control in any piece of legislation, we're looking at continuing those projected 6.2 percentage point increases ... I think it's time to bring that back," she said.

A spokesman for Senate Finance Committee Chairman Max Baucus said the report "excludes all the provisions that will actually lower the cost of coverage," including tax credits and an increased enrollment.

'SELF-SERVING ANALYSIS'

The Obama White House had sought to work with the industry but the report was a clear indication that this strategy was no longer operative. It has brokered deals with drug makers and hospitals, but no such deal has been struck with insurers. Continued...

 

[Meister]

Just saying, Meister, you can vote for your government, but you can't vote for the health insurance industry who is doing its darned level best to take every dollar it can while giving as little in return as possible. Yes, this industry needs to be regulated.

Jake...you are making sense. I never stated that the insurance industry doesn't need regulating. I'm all for that, but I am all for tort reform also, that the government doesn't want to let go of. Regulating is part of the healthcare reform I'm on on board with. If it's going to be done right, then it's going to have to have tort reform. But being most of the politicians are lawyers, it seems their trying to protect their own industry.

 

[toomuchtime_]

Late Sunday, the industry trade group America's Health Insurance Plans sent its member companies a new accounting firm study that projects the legislation would add $1,700 a year to the cost of family coverage in 2013, when most of the major provisions in the bill would be in effect.

Premiums for a single person would go up by $600 more than would be the case without the legislation, the PricewaterhouseCoopers analysis concluded in the study commissioned by the insurance group.

"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," Karen Ignagni, the top industry lobbyist in Washington, wrote in a memo to insurance company CEOs.

The study projected that in 2019, family premiums could be $4,000 higher and individual premiums could be $1,500 higher.

Baucus spokesman Mulhauser said the study is "seriously flawed" because it doesn't take into account provisions in the legislation that would lower the cost of coverage, such as tax credits to help people buy private insurance, protections for current policies and administrative savings from a revamped marketplace.

White House health care spokeswoman Linda Douglass concurred. "This is an insurance industry analysis that is designed to reach a conclusion which benefits the industry, and does not represent what the bill does," she said.

The Baucus plan faces a final committee vote on Tuesday. It got a boost last week when the Congressional Budget Office estimated it would cover 94 percent of eligible Americans while reducing the federal deficit.

But the PricewaterhouseCoopers analysis attempted to get at a different issue — costs for privately insured individuals.

It concluded that a combination of factors in the bill — and decisions by lawmakers as they amended it — would raise costs.

The chief reason, said the report, is a decision by lawmakers to weaken proposed penalties for failing to get health insurance. The bill would require insurers to take all applicants, doing away with denials for pre-existing health problems. In return, all Americans would be required to carry coverage, either through an employer or a government program, or by buying it themselves.

But the CBO estimated that even with new federal subsidies, some 17 million Americans would still be unable to afford health insurance. Faced with that affordability problem, senators opted to ease the fines for going without coverage from the levels Baucus originally proposed. The industry says that will only let people postpone getting coverage until they get sick.

Other factors leading to higher costs include a new tax on high-cost health insurance plans, cuts in Medicare payments to hospitals and doctors, and a series of new taxes on insurers and other health care industries, the report said.

"Health reform could have a significant impact on the cost of private health insurance coverage," it concluded.

Insurers played a major role in defeating then-President Bill Clinton's health care plan in the 1990s. Sunday, the industry stopped short of signaling all-out opposition. "We will continue to work with policymakers in support of workable bipartisan reform," Ignagni said in her memo.

The Associated Press: Insurers mount attack against health reform

You obviously will believe everything the insurance companies tell you, including that they will take care of you.

If you can do arithmetic and have thought about the Pricewaterhousecoopers analysis, you understand that that it is correct.

 

[toomuchtime_]

UPDATE 1-White House blasts health insurance sector report | Reuters

UPDATE 1-White House blasts health insurance sector report
Mon Oct 12, 2009 3:46pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+]
More Business & Investing News...
(For coverage of U.S. healthcare reform, click on [nN20512341])

* White House dismisses report, says timed for Senate vote

* Report says many young people may not buy insurance

* Insurers' lobby: other sectors need to do "fair share" (Adds comments from insurers, consumer groups, Baucus spokesman)

By Steve Holland and David Alexander

WASHINGTON, Oct 12 (Reuters) - The White House on Monday blasted a report from the health insurance industry that said Senate healthcare legislation would lead to increases in annual insurance premiums of as much as $4,000 by 2019.

The report for the industry trade group America's Health Insurance Plans represented a shot across the bow at Democratic plans to overhaul the $2.5 trillion healthcare system as President Barack Obama has been gaining momentum on the issue.

A top goal of Obama in seeking to revamp healthcare is to rein in costs that have soared in recent decades. The report, prepared by consultants PricewaterhouseCoopers and posted on the industry group's website over the weekend, said costs would increase for Americans rather than decline.

"Health reform could have a significant impact on the cost of private health insurance coverage," the report concluded.

The release of the report comes as the Senate Finance Committee plans to vote on Tuesday on its healthcare plan after budget analysts gave the bill a rosy report card, estimating it would meet Obama's goal of reducing the budget deficit over 10 years.

But the insurance group, which represents Aetna Inc (AET.N), Cigna Corp (CI.N), UnitedHealth Group Inc (UNH.N), WellPoint Inc (WLP.N) and others, defended the findings, saying lawmakers have abandoned any effort to slow healthcare costs.

Instead, the bill looks to raise money from insurance companies and, ultimately consumers and employers, to help pay for healthcare costs that outpace wages each year, the group's president Karen Ignagni told reporters.

"Because we don't see comprehensive cost control in any piece of legislation, we're looking at continuing those projected 6.2 percentage point increases ... I think it's time to bring that back," she said.

A spokesman for Senate Finance Committee Chairman Max Baucus said the report "excludes all the provisions that will actually lower the cost of coverage," including tax credits and an increased enrollment.

'SELF-SERVING ANALYSIS'

The Obama White House had sought to work with the industry but the report was a clear indication that this strategy was no longer operative. It has brokered deals with drug makers and hospitals, but no such deal has been struck with insurers. Continued...

Notice that the WH and Baucus are unable to respond to the Pricewaterhousecoopers analysis. This is because anyone who can do arithmetic understands it is correct.

 

[chanel]

Take a look at Maine and MA. Does anyone really think premiums will go down? That was never the intention, but when you ask libs how much more they are personally willing to spend to "spread the wealth" you never get an answer. Maybe they don't have jobs? I dunno. But I do know my employer paid insurance is worth 12K. I shall be punished!