CBO: Health Care Reform Will Lower Out-Of-Pocket Burden For Most Consumers

[kpete]

Source: Talking Points Memo

.....................

According to CBO, average premiums in the individual market would increase 10 to 13 percent because of provisions in the Senate health care bill, but, crucially, most people (about 57 percent) would actually find themselves paying significantly less money for insurance, thanks to federal subsidies for low- and middle-class consumers.

Those are two separate findings, but it seems likely that Republicans will use the former finding to attack reform, claiming it will raise people's premiums, and leave people confused about the second finding, which is actually the one that impacts people's pocket books.

The report finds that for the minority of consumers in the individual market who receive no federal assistance, premiums (and therefore out-of-pocket costs) will increase slightly--on the order of 10 percent--which could prove politically difficult in the years after health care reform takes effect.

Separately, for those who have high-end employer-provided insurance, CBO finds that a new excise tax on high-end policies will have disparate effects on premiums. Those who keep their "cadillac" insurance would end up paying higher premiums, and those who choose instead to change policies would pay lower premiums, but CBO finds that on average, people who have plans susceptible to the 40-percent tax will ultimately be paying less in premiums than they would without health care reform.

You can read the entire report here (PDF).
http://cbo.gov/ftpdocs/107xx/doc10781/11-30-Premiums.pdf

Read more: http://tpmdc.talkingpointsmemo.com/2009/11/cbo-health-care-reform-will-lower-out-of-pocket-burden-for-most-consumers.php

[Cant trust em]

1. Thanks for posting. I was looking for this over the weekend. nt

[toadzilla]

2. so the only people who save, save because of tax subsidies?

reform my ass.

[dflprincess]

8. And most of us - including those receiving subsidies

(especially as their incomes get closer to the cap for subsidies) will still be paying more and more for "coverage" and out of pockets while getting less and less access to care than anyone in any of the civilized countries that have national health plans.

I can't believe they have the gall to call this scam "reform".

[Beavker]

3. Yes, our friends at CNBC used the 10-13% figure up by itself today.

Of course they would. They are right wing Wall Street whores. I am floored also by the number of horrific and blatently false adds the right wing have put out there. Just flat out lying.

[JDPriestly]

4. I'm wondering what percentage of the people who have to pay more

will be in New York and California. Sounds like, once again, this bill is written to benefit those from states with low populations.

I say that because in Southern California and the Bay area, the cost of living is extremely high and incomes therefore appear higher. Takes more to buy a house, get your hair cut, etc. That means that, especially in the Bay area, a couple earning $75,000 may be paying some huge amount of the money just for their apartment. In a small town in the middle west, the rent for the same apartment would be a few hundred dollars. Will there be an income adjustment for areas in which the cost of living is very high?

[xchrom]

6. +1

[BootinUp]

7. The cost of living in Cali and NY

is higher as a result of the ridiculous cost of housing there primarily. It ends up driving other things higher. When I moved from Cali to N.C. I found the cost of living disregarding real estate was not all that different, of course that was 2 decades ago.

[bkkyosemite]

5. Bet those on Medicare who have to pay a premium for Medicare B and some D and a supplemental or

advantage premium let's see for me...it is 96 for B 70 for Advantage 70 for prescriptions dental and vision and oh yea there is my husband so double that on a very fixed income ...lets see total monthly bill for medical coverage ...hold on let me get the calculator... = $477 per month and that is not counting the co-pays they are raising come january ...so do we get a subsidy or not...I bet not and no COLA either...BS

[eridani]

9. For coverage that totally sucks

You will be forced to buy this shit, and still be paying all of your regular medical expenses out of pocket. If you choose your ongoing expenses when you can't pay both, you are now a criminal.

[meow2u3]

10. Wasn't that the whole point behind health care reform?

To alleviate the out-of-pocket burden on individuals and families?

BTW, what are "Cadillac" health insurance plans?