Monday, October 12, 2009

Putting a Price on Obamacare

Price Waterhouse Coopers has their own analysis of Obamacare and it isn't pretty. It seems the Nobel Peace Prize winner and members of Congress have been caught with their pants down.

Here are some key findings of PWC for those who like to cut to the chase.

  • Health reform could have a SIGNIFICANT impact on the cost of private health insurance.

  • Insurance market reforms will increase premiums

  • Taxes on "Cadillac" plans will be passed on to consumers

  • Medicare cuts will increase cost-shifting to those with private insurance

  • New taxes on segments in health care delivery will impact premiums

The overall cost of health care reform will increase premiums ABOVE current levels and MORE than is expected WITHOUT health care reform.

Projected premium increases over the next 4 years without health care reform are 26%. With health care reform, premiums will increase by 40%.

Over the next 7 years premiums will increase by 50% without reform and 73% with health care reform.

I don't know how much PWC was paid for this report but I do know this much. It doesn't take a rocket surgeon to figure out you can't provide MORE benefits for LESS money.

Consider this.

I had a call earlier today that is similar to others in the past. A guy called looking for health insurance. He has been without health insurance for over a year but during that time has been seeing a doctor for a foot problem. The condition has worsened and now he will need surgery.

He wants a health insurance policy to pay for his hospitalization and surgery. I have no idea how much the surgery will be. Could be $20,000, could be $50,000.

He thinks a health insurance company will be willing to extend coverage, pay for his bill, then (if he chooses) he can drop the coverage after recovery.

Under current rules no one will issue coverage.

Under Obamacare no one can refuse coverage.

See the difference?

And PresBO wants you to believe the PWC report is a lie.

Whose nose is growing now?

PWC goes on to estimate the impact on premiums by age group. This is rather eye opening.

  • Premiums in the 18 -24 age band will increase by up to 63%

  • Premiums for 40 - 44 year old's will increase by up to 52%

  • Premiums for 60 - 64 year old's will increase by up to 37%

Those with the biggest negative impact on premiums will be those who most likely voted for the Nobel winner in chief.

If the excise tax on "Cadillac" plans is implemented, at least one of the mandated plans will be subject to the 40% excise tax in 46 of 50 states by 2019.

In other words, buying the plans Congress REQUIRES you to have will require you to pay a 40% tax on top of higher premiums.

Smaller cars, bigger health insurance premiums, Poppa Washington.
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