Tuesday, October 13, 2009

Baucus Bill to Skyrocket Insurance Premiums

Health Insurance companies engaged PricewaterhouseCoopers (PwC) to examine the impact of the Baucus Health Care reform bill on private insurance premiums. The results are startling. The audit examined the impact of four key changes in the health care reform legislation and found private health insurance premiums will rise by 111% over the next 10 years if these provisions are enacted.


Here is what this means in dollar values.
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.

Democrats and the White House claim this analysis is unfair because it does not consider subsidies to the poor and lower middle class. Of course, not everyone will receive these subsidies. The insurance industry responds that subsidies don't change the fact prices will increase.

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