BREAKING NEWS: Forbes Magazine Examines How Current Reform Proposals Will Not Lower Costs
Posted by The Campaigns on January 18, 2010 at 12:08 PM
The debate over whether the current reform proposals will lower costs continues, and it seems that the CW is moving toward the idea that we have talked about in this blog -- current reform proposals will not do enough to lower costs.
Forbes magazine picks up on this story and examines what will happen to people's health insurance costs.
Here are a few key excerpts:
"If you're thinking the legislation will tamp down overall health care spending, reconsider. Policy analysts ranging from the neutral Congressional Budget Office to the HMO lobby see no abatement in the growth rate of health care spending."
"The premium hikes will result from cost shifting, better known as passing the buck. The House and Senate insurance bills aim to cover their costs in part by cutting annual Medicare reimbursements to hospitals, doctors and drug companies by $45 billion. Those providers will likely try to offset the cuts by negotiating higher rates with private HMOs--which then get passed along through higher premiums. That's exactly what occurred after past Medicare and Medicaid cuts, according to the CBO analysis."
"Also, the legislation requires HMOs to pay $7 billion annually in new fees. That will get passed on to individuals and employers who buy the policies."
"The biggest losers, or rather spenders, will be those who currently pay for their own insurance but make more than four times the federal poverty level, a multiple that comes to $88,200 for a family of four. They will not be eligible for subsidies. The CBO calculated premiums for that group will rise 10% to 13% above and beyond the increases that could be expected without new laws."
"...rest assured premium increases will occur as costs trickle down from doctors, hospitals and HMOs looking to cover their costs."
For the full article click here.
