Health reform will drive up prices
Debate in the Senate more than 848 billion U.S. dollars offer the Democratic leadership to reform the U.S. health system is in full swing. Sen. Max Baucus, Democrat of Montana, the chief architect of the reform project, said from the Senate that " Health reform is fundamentally about reducing health care costs. "
Fair enough – and a worthy goal. Unfortunately, recent studies have concluded that the reform plans emerging from the House and Senate would translate into higher insurance costs for most people.
The most a recent, non-partisan Congressional Budget Office, found that premiums in the individual market would increase by 10 percent to 13 percent favored the plan Leaders of the Senate by Democrats than it would in the absence of reform. The employer insurance rates increase at the same speed with or without reform. It is difficult understand why the Senate passed a trillion dollars to push through the reforms that have so little positive impact on Americans.
Another study, by the consulting firm Oliver Wyman, the Senate plan would drive the price of the value of a year of individual coverage from a new member to jump $ 1,500. Family coverage would raise $ 3,300.
The third series of studies using data from WellPoint, the country's largest insurer, reached a similar conclusion. Researchers determined that health insurance premiums rise dramatically in the 14 states where WellPoint currently operates Blue Cross plans. The average Young customers healthy experience a premium increase incredible 154 percent. And the average family premium would increase by 85 percent.
In Missouri, the situation is particularly bleak. The average man 25 years old, pays about $ 60 per month for insurance today. After these reforms, which would pay 166 dollars – an increase of 178 percent. Premiums for a family with two children in Missouri would increase considerably, from $ 373 to $ 768 per month.
Package Reform also wreak havoc on small businesses. Taken together, the various elements of the House and Senate bills would increase premiums for small employers, 88 percent, according to WellPoint data. As a result, many companies would provide insurance for their employees. In fact, Oliver Wyman estimates that 2.5 million fewer workers in small businesses that get their insurance through their employer under the reform.
The main reason for these increases price of the package is the lack of an effective Senate "individual mandate" requiring everyone to obtain insurance. From 2013, the Senate bill fine anyone who has no insurance of $ 200. In 2018, the fine will increase to $ 750.
By the time these penalties are in full force, the insurance plan average individual is expected to cost $ 5,000, depending on the CBO. If the price of an insurance policy is much higher than the financial penalty, a large number of healthy individuals are uninsured and the option of paying the fine.
Other elements of the reform will only worsen this trend. For example, provisions requiring insurers to issue policies to all applicants and restrict your ability to charge premiums based on health status of a person would tend to encourage young healthy people to remain uninsured until they absolutely need a policy. In fact, Oliver Wyman estimates that 12.6 million people would forego coverage in the absence of an effective mandate.
That makes sense – why pay insurance premiums if you can get coverage for the same price when ready to use?
These theme "guaranteed" provisions are well-intentioned, but they will cause insurance rates to skyrocket. If young, healthy people – who tend to consume less care – leaving the insurance fund, only high-risk, high-cost people will continue. Insurers have no choice but to increase premiums.
It is important that Congress ensure that everyone has access to insurance regardless of preexisting conditions or chronic. But this goal is unattainable without a mandate from the individual that is based all on the insurance fund.
Americans deserve a health system that offers world class high quality, attention economic health. Unfortunately, the reforms under consideration in Congress to dramatically raise prices, putting health insurance out of reach of a segment still older Americans.
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