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:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture ... said Christina Austin - CEO of Pixel Film Studios. , ProHand Cartoon’s package ... Final Cut Pro X . Simply select a ProHand generator and drag it ...
(Date:6/25/2016)... ... , ... As a lifelong Southern Californian, Dr. Omkar Marathe earned his Bachelors ... Geffen School of Medicine at UCLA. He trained in Internal Medicine at Scripps Green ... hematology/oncology at the UCLA-Olive View-Cedars Sinai program where he had the opportunity to train ...
(Date:6/25/2016)... ... June 25, 2016 , ... On Friday, June 10, Van ... Wellness at Work award to iHire in recognition of their exemplary accomplishments in worksite ... 7th annual Maryland Workplace Health & Wellness Symposium at the BWI Marriott in Linthicum ...
(Date:6/24/2016)... Los Angeles, CA (PRWEB) , ... June 24, 2016 , ... ... plastic surgery procedures that most people are unfamiliar with. The article goes on to ... known procedures, but also many of these less common operations such as calf and ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World Sickle Cell Observance ... and the benefits of holistic treatments, Serenity Recovery Center of Marne, Michigan, ... Disease. , Sickle Cell Disease (SCD) is a disorder of the red blood cells, ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... , June 23, 2016 Research ... MEMS Devices Medical Market Analysis 2016 - Forecast to 2022" ... The report contains up to date financial data ... analysis. Assessment of major trends with potential impact on the ... analysis of market segmentation which comprises of sub markets, regional ...
(Date:6/23/2016)... -- Bracket , a leading clinical trial technology and ... platform, Bracket eCOA (SM) 6.0, at the 52 nd ... 2016 in Philadelphia , Pennsylvania.  A demonstration ... of its kind to fully integrate with RTSM, will be ... is a flexible platform for electronic clinical outcomes assessments that ...
(Date:6/23/2016)... 2016  Astellas today announced the establishment of Astellas Farma Colombia (AFC), a new affiliate with operations headquartered in ... America . ... ... ... ...
Breaking Medicine Technology: