Navigation Links
CBO Confirms That Premiums Will Increase Under the Senate Healthcare Reform Bill
Date:11/30/2009

While recognizing significant impact, CBO analysis understates the effect

WASHINGTON, Nov. 30 /PRNewswire-USNewswire/ -- The Blue Cross and Blue Shield Association (BCBSA) issued the following statement regarding the estimate released today by the Congressional Budget Office (CBO):

The CBO today confirmed what many economists, actuaries, and health policy experts have said for weeks: the Senate healthcare reform bill would make coverage more expensive for millions of people buying individual insurance policies.

While CBO recognizes the significant impact of the proposal, it understates the effect in three areas:

  • Several provisions in the Senate bill will cause many people to wait until they are sick to purchase coverage, significantly driving up premiums for everyone. These include severely restricting discounts for young people, very low financial penalties for not purchasing coverage, while still requiring insurers to guarantee coverage regardless of preexisting conditions. Many young people, in particular, are likely to pay the nominal fine, rather than purchase coverage that costs far more than the penalty.
  • Adding the previously uninsured will significantly increase premiums in the individual market. Contrary to CBO, Oliver Wyman, Inc.'s analysis of actual claims' costs in the individual market predicts that the uninsured will actually be 20 percent more expensive to insure than those in the individual market today. Had CBO adopted a similar assumption, their premium impact would have been approximately 30 percent higher.
  • The impact will vary significantly by state because of regional differences in rating laws today. Oliver Wyman, Inc. found that two-thirds of Americans live in states where the average premium impact will be much higher than a national average.

Caution should be used in describing CBO's results on how many people will see lower premiums because of the federal subsidies. It should be noted that many of these people were previously uninsured and therefore did not pay any premiums. While we strongly support extending coverage to everyone and providing needed subsidies, we should be careful not to misconstrue these as savings.

We are pleased that the debate is now focusing on how the bills will make coverage less affordable to the American people. We encourage the Senate to use the CBO findings, as well as the analyses of Oliver Wyman, to make much needed improvements to the Senate Patient Protection and Affordable Care Act to ensure that it will be affordable and sustainable for everyone.

The Blue Cross and Blue Shield Association is a national federation of 39 independent, community-based and locally operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for more than 100 million members - one-in-three Americans. For more information on the Blue Cross and Blue Shield Association and its member companies, please visit www.BCBS.com.

SOURCE Blue Cross and Blue Shield Association


'/>"/>
SOURCE Blue Cross and Blue Shield Association
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. GAO Report Confirms: Medicare Underpays for Anesthesia Services; Nurse Anesthetists Assure Seniors Access to Safe Anesthesia Care
2. University of Nevada School of Medicine Professor Confirms Accuracy Through Validation Study Using the CSI Health Station Model 6K
3. Actavis Confirms its Patent Challenge of Kings Avinza(R)
4. Barr Confirms Patent Challenge of UROXATRAL(R)
5. Perrigo Confirms Filing for Generic Version of Mucinex(R) and Announcement of Lawsuit by Adams Respiratory
6. Use of Technology to Document Comorbid Conditions May Improve Reimbursement, Increase Documentation Accuracy Study Confirms
7. Newly Published Study in Leading Medical Journal Further Confirms the Brava Systems Non-Surgical Breast Enhancement Effectiveness
8. LUNA Pure Prevention Survey Confirms Breast Cancer Misconceptions
9. Barr Confirms Patent Challenge of Ritalin(R) LA
10. New Research Released at AHA Confirms Itamars PAT Technology to Diagnose Early Cardiovascular Disease
11. Survey Confirms Americans Have a True Blind Spot Regarding Their Eye Health - and the Real Danger of UV Rays
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... ... February 05, 2016 , ... The event is being ... Block Event Center in Minneapolis, Minn. Triumph Over Parkinson’s will fund nearly $100,000 for ... of Schneiderman’s Furniture, lives with Parkinson’s disease and is the architect of this informative ...
(Date:2/5/2016)... ... , ... After years as an active staff surgeon and having served as ... Wayne Carman transitioned to chief of the Division of Plastic Surgery at what is ... chief and began a second three-year term in January of 2016. , The original ...
(Date:2/5/2016)... ... February 05, 2016 , ... Regular gym users know ... having to wait longer to access the treadmills. It’s a predictable trend. After the ... lose weight and get in shape by joining gyms, starting new walking or running ...
(Date:2/5/2016)... Georgia (PRWEB) , ... February 05, 2016 , ... Dr. ... to announce their 2nd Annual No Cost Dental Day to individuals in need. The ... The purpose of this No Cost Dental Day is to provide dental care to ...
(Date:2/5/2016)... ... February 05, 2016 , ... Health and wellness is a topic that should ... event they are experiencing an illness. Migraines are a severe form of a headache ... migraines would not wish the pain on their worst enemy, the feeling can last ...
Breaking Medicine News(10 mins):
(Date:2/5/2016)... , Feb. 5, 2016  Aralez Pharmaceuticals Inc. ... of POZEN Inc. ("POZEN") and Tribute Pharmaceuticals Canada Inc. ("Tribute") ... and shareholders of Tribute. The combined company will operate ... company with operations in Canada , ... United States . Under the terms of the ...
(Date:2/5/2016)... February 5, 2016 --> ... report states that the global active pharmaceuticals ingredients (APIs) ... predicted to reach US$185.9 bn by 2020. It is ... 2014 to 2020. The title of the report is ... by Geography, and by Therapeutic Area) - Global Industry ...
(Date:2/5/2016)... Feb. 5, 2016  Henry Schein, Inc. (NASDAQ: HSIC ... and services to office-based dental, animal health and medical ... agreement to acquire a majority ownership interest in Dental ... in Brazil . ... Dental Cremer is the dental distribution business of Cremer ...
Breaking Medicine Technology: