Senate Finance Dems' Health Care Experiment Will Raise American Families' Premiums By $4,000 Over Next Decade

Strategic Insights -

The Illinois Republican Party released information stating that the Senate Finance Committee's health care reform bill will significantly increase American families' premiums over the next decade. According to a PricewaterhouseCoopers study, single coverage is expected to increase by $1,500 more than under the current system, while family coverage is expected to increase by $4,000 more, representing an 18 percent increase in premiums by 2019. This increase is largely due to the bill's provision of cutting $404 billion from Medicare and Medicaid, shifting costs to American consumers. Furthermore, the bill includes $506 billion in new health care taxes and fees over the next 10 years. Despite claims of being fully paid for, the bill will eventually lead to billions in deficits shouldered by American taxpayers.

Key Takeaways:

  • The Senate Finance Committee's health care reform bill will increase American families' premiums by $4,000 over the next decade, with single coverage increasing by $1,500 more than under the current system and family coverage increasing by $4,000 more, representing an 18 percent increase in premiums by 2019.
  • The bill includes $404 billion in cuts to Medicare and Medicaid, shifting costs to American consumers and leading to increased premiums.
  • The bill includes $506 billion in new health care taxes and fees over the next 10 years.
  • Senate Majority Leader Harry Reid will merge the Finance Committee bill with a more liberal bill from the Senate HELP Democrats, which includes provisions such as the "public option" that could mean over 88 million Americans losing current coverage.
  • The "public option" could lead to a shift of 88.1 million workers from private employer insurance to the public plan, as estimated by the Lewin Group's analysis of the July 15 draft of the American Affordable Health Choices Act of 2009.
  • The bill patches the problem of Medicaid payments to physicians for one year, but does not pay for the $245 billion "doc fix," leading to potential future deficits.
  • White House officials, including Rahm Emanuel, Nancy-Ann DeParle, and Peter Orszag, will be involved in the merger process, working with Reid to finalize the bill.

Statistics:

  • $4,000: The expected increase in premiums for American families over the next decade due to the Senate Finance Committee's health care reform bill.
  • $1,500: The expected increase in single coverage premiums by 2019.
  • 18 percent: The increase in premiums by 2019.
  • $404 billion: The cuts to Medicare and Medicaid in the bill.
  • $506 billion: The new health care taxes and fees over the next 10 years.
  • 88.1 million: The estimated number of workers who could shift from private employer insurance to the public plan under the "public option."
  • $245 billion: The "doc fix" that the House version of health reform includes, but the Senate bill does not.

Sources:

  • PricewaterhouseCoopers, "Potential Impact Of Health Reform On The Cost Of Private Health Insurance Coverage," 10/11/09.
  • Congressional Budget Office, "Letter to Chairman Max Baucus," 10/7/09.
  • Kim Geiger, "About Tuesday's Healthcare Vote, And What Comes Next," The Los Angeles Times, 10/11/09.
  • Benjamin Spillman, "Reid: Final Health Bill Will Have 'Public Option,'" The Las Vegas Review-Journal, 10/1/09.
  • John Shelis, Vice President, Lewin Group, "Analysis Of The July 15 Draft Of The American Affordable Health Choices Act Of 2009," 7/17/09.