As the Senate Finance Committee prepares for a Tuesday vote on health care reform legislation, the private insurance trade group under the America’s Health Insurance Plans (AHIP) has gone on the offensive saying Max Baucus‘ America’s Healthy Future Act would actually escalate the already skyrocketing rise in health insurance premiums. In a report issued by PriceWaterHouseCoopers and commissioned by AHIP, researchers found that insurance premiums could go up by as much $4,000 per year (an 111-percent increase) if Congress adopts the plan now know as BaucusCare versus a 79-percent increase if no reforms are adopted.
Key Findings
Health reform could have a significant impact on the cost of private health insurance
coverage.There are four provisions included in the Senate Finance Committee proposal that could
increase private health insurance premiums above the levels projected under current law:
o Insurance market reforms coupled with a weak coverage requirement,
o A new tax on high-cost health care plans,
o Cost-shifting as a result of cuts to Medicare, and
o New taxes on several health care sectors.The overall impact of these provisions will be to increase the cost of private insurance
coverage for individuals, families, and businesses above what these costs would be in
the absence of reform.On average, the cost of private health insurance coverage will increase:
o 26 percent between 2009 and 2013 under the current system and by 40 percent
during this same period if these four provisions are implemented.
o 50 percent between 2009 and 2016 under the current system and by 73 percent
during this same period if these four provisions are implemented.
o 79 percent between 2009 and 2019 under the current system and by 111 percent
during this same period if these four provisions are implemented.(From PriceWaterHouseCoopers’ Potential Impact of Health Reform on the
Cost of Private Health Insurance Coverage)
The timing of this new report couldn’t be worse for the White House and Congressional Democrats as three key members of the Finance Committee - Democrats Kent Conrad and Blanche Lincoln along with Republican Olympia Snowe , have yet to announce their intended votes on the bill but have all expressed concern over the potential costs to consumers if Americans are forced to purchase health insurance via an individual mandate which is included in not only the Baucus bill but all five of the bills currently being considered on Capitol Hill.
“This is a self-serving analysis from the insurance industry, one of the major opponents of health insurance reform,” White House spokesman Reid Cherlin said. “It comes on the eve of a vote that will reduce the industry’s profits. It is hard to take it seriously,” he added. (From Reuters’ White House blasts health insurance sector report.)
Democrats Jay Rockefeller and Ron Wyden have also expressed concern that the Finance bill’s lack of a government-run public option insurance plan will leave tens of millions of Americans without an affordable insurance option should Baucus’ cooperatives approach to reform be adopted in a final Senate bill and have refused to throw their support behind the bill ahead of the vote.
If the Finance Committee fails to pass a bill out of committee during tomorrow’s vote - or the vote is postponed due to a lack of support, health care reform could very well be off the table for 2009.



