America For Purchase

The majority of Americans favor a public health insurance option to compete with the private health insurance company’s monopoly continues to fall on deaf ears in Congress.  Today the health insurance industry announced plans to substantially raise rates on health care premiums for all Americans.

In a memorandum to Congress from the America’s Health Insurance Plan, according to an audit conducted by Pricewaterhouse Coopers (via the Washington Post) in part projected that in 2019, family premiums could be $4,000 higher and individual premiums could be $1,500 higher.America’s Health Insurance Plans Memorandum

TO: Member Plan Presidents and CEOs

FROM: Karen Ignagni

DATE: October 11, 2009

RE: New PwC Report Finds that Senate Proposal Will Significantly Accelerate Health Care Cost Increases

We are writing today to share a new report by PricewaterhouseCoopers (PwC) that examines the impact of the Senate reform proposal on the cost of coverage for both single and family policies in the individual, small group, large group, and self-funded insurance markets.

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.

In fact, between 2010 and 2019 the cumulative increases in the cost of a typical family policy under this reform proposal will be approximately $20,700 more than it would be under the current system.

Key drivers of rising costs analyzed in the report include:

* Market reform enacted in the absence of universal coverage will increase costs dramatically for many who are currently insured by creating a powerful incentive for people to wait until they are sick to purchase coverage. Since proposing health insurance reform in 2008, AHIP has provided data showing that market reform needs to be paired with an effective personal coverage requirement to ensure affordability and minimize disruption for those currently insured.

* As noted previously by the Congressional Budget Office, the new taxes on health insurance plans, medical device makers, and pharmaceutical manufacturers will result in increased costs for individuals, families, and employers. We are making the point that health care taxes will add to, rather than reduce, rising medical costs.

*Record reductions in Medicare spending will raise costs as providers shift even more costs to individuals, families, and employers with private coverage.

*Taxes on high-value health plans will raise the cost of employer-based coverage, particularly for companies with older workforces and those whose benefit plans have been secured through collective bargaining agreements.

Read the full letter here.

Also see Insurers escalate criticism of health overhaul

It is clear the health insurance industry and Max Baucus, whose health insurance bribes now total a whopping $3,902,785, are putting their interests over hardworking taxpaying Americans; continue their march to financially disseminate the budgets of families and children.

Americans must contact their Congressional Representatives, 877-264-4226, to demand a Public Option to compete with the health insurance robber-barons.

Source: Kaiser Family Foundation; Health Research & Educational Trust

Filed under: American Injustice