AHIP Is Right, and May Be Low( ALEXANDRIA Va. Oct. 13 -- Today CAHI...),Health

ALEXANDRIA, Va., Oct. 13 /PRNewswire-USNewswire/ -- Today, CAHI Executive Director Dr. Merrill Matthews released the following statement:

Critics are up in arms over America's Health Insurance Plans (AHIP) daring to speak the truth about the Senate health care reform proposal, and we applaud the organization's efforts. If anything AHIP's analysis of health premium increases is too low. Supporters of the health bills are simply ignoring years of states' evidence of many of these proposed Senate and House health reforms.

Last May CAHI released a report from our consulting health actuaries estimating the cost-increasing impact of several health insurance reform options. It found that the cost of a policy in the individual market (i.e., non-group) with an individual mandate, guaranteed issue and some form of community rating -- all of which are in the Senate and House plans -- would drive up the cost of a policy between 65 percent and 95 percent within a few years -- not 2019.

And a plan with no mandate -- which the president initially backed -- would more than double the cost of a policy. Relaxing the penalty, as the Senate Finance bill has done, moves the legislation closer to the no-mandate category.

While AHIP looked at the entire private market (i.e., group as well as individual policies), CAHI only considered the individual market. But it is important to note that the group market is already essentially a guaranteed issue market. Companies must cover new employees regardless of their health condition.

So while the Senate bill will have an impact on the group market, the most dramatic increases will come in the individual market, where insurers in most states are still allowed to underwrite policies.

Moreover, the CAHI study was published before anyone considered imposing excise taxes on the more costly -- they aren't necessarily "gold-plated" -- plans. And there will likely be even mo
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