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  • CBO: Obamacare Will Raise Insurance Premiums Even More than Before

    On Friday, the last day before a long weekend due to Columbus Day and on the eve of the Finance Committee vote, the Congressional Budget Office revealed some new information about the affect of the Baucus plan on premiums for health insurance. Surprise! After the Senate Finance Committee worked on the bill, health insurance will now cost individuals and families even more than the Congressional Budget Office originally estimated. On September 22, 2009, the CBO estimated that the average premium for a single plan was $4,700 to purchase the Silver plan. Last Friday, the CBO upped their estimate by 6% to $5,000 for the same plan in the same year . Families would also see a $300 increase in health premiums from $14,700 to $15,000.

    The reason for the premium increases are because businesses pass on costs and fees to businesses and customers. As the Finance Committee added more taxes to the bill, the insurance cost to many families increased. The finance committee also lowered the out of pocket premium payments for those making less than 300% of poverty. For example, a family of four with $42,000 in income would now pay $2,600 instead of $3,000 in health premiums. However, purchases of individual plans who make over three times the poverty rate will pay more under the revised Baucus plan as will families with over four times the poverty rate in income.

    CBO still finds that the Baucus proposal would cause individuals who purchase single plans to pay 15-17% of their total income in health insurance if they earn between two and four times the poverty rate. Families would have to pay even more for group coverage spending 18-19% of their total family income for those with income between two and four times that of the poverty rate.

    The CBO tables that were issued last Friday reveal how costs are shifted and increased during a committee markup. It is unfortunate that the new analysis was not released until the Friday before a holiday weekend, where it would go virtually unnoticed before the passage of the bill from Committee.

    Posted in Obamacare [slideshow_deploy]

    22 Responses to CBO: Obamacare Will Raise Insurance Premiums Even More than Before

    1. Jeannine Starkey, Ak says:

      This new information was based on a study performed by Price Waterhouse, who was hired by the insurance lobbyist. This study looked at the cost, without any attention being payed to the cost savings within the bill. The overall result was so inaccurate, that the accountants who participated in the study distanced themselves, and explained just that. To look at this for what it really is, is to know that the insurance companies are basically saying, pass this bill and we raise your premiums!

    2. njresident says:

      Announcing: 3-D Halloween Obamacare Horror Show -

      http://www.youtube.com/watch?v=mpQlTN9kgfo&fe

    3. Freedom of Speech, T says:

      Dear Jeannine Akron OH,

      I mean this sincerely.

      When have you ever known "cost savings" to work in a new entitlement program?

      There is no cost savings. Our unpaid expenditures are in the "TENS OF TRILLIONS" of dollars.

      When they SAVE something, they shift it to another program. THERE IS NO MONEY IN A LOCKBOX. It is one giant shell game (ponzi scheme). The reason they can even function is because they keep finding ways to increase taxes AND borrowing.

      I really do not know how anyone can explain that basic fact so that people will understand it.

      When there is not enough middle class taxpayers to fund this, where is the government going to get the money?

      Better start checking out what a VAT Tax is.

    4. Keith Portland, OR says:

      I am always concerned when a seemingly factual response is met with innuendo and unsubstantiated facts and theoretical conjecture. The insurance companies have made billions in profit, why would anyone think they would not spend millions trying to protect that profit. Boy….I sure would.

    5. Keith Portland, OR says:

      I watched the video on you tube…..Good Grief!!!!

    6. Pingback: CBO: Obamacare Will Raise Insurance Premiums Even More than Before … | Finance site-Credit|Insurance|Real Estate|Investing

    7. Karen says:

      Insurance compsnies do not make huge profits. Their profit margin is low,3%.

    8. wags101 says:

      There is plenty of blame to go around. Why can't the doctors and hospitals just charge less for services. They charge whatever they know they can get from the few remaining people who have insurance so they can take care of the one's who don't. They can't be denied care and even illegals can't be denied emergency care. So what's rush?

      This is going to cause more job loss and higher premiums. The Messiah doesn't give a damn as long as he gets something, anything passed.

    9. Bobbie Jay says:

      To have insurance is a privilege at a cost. And of choice to purchase by the people. It is one of the duties of the government to "oversee" corruption of costs and or service. The government chose to neglect this duty to set up the insurance companies to show off this big production of high profits. Who cares what profits they make? That's the beauty of freedom to do business and profit in America. They provide a service by choice, not government force!

      Look what the stupidity of government did for AIG. Give them billions of our money and failed to direct appropriations and allocations of the money and then exposing AIG for paying off bonuses. The government is setting all big private businesses up so people will look resentfully upon them and continue to be unaware of government's involvement. The government is inefficient, wasteful (as it isn't their money, it's taxpayers) and failures in everything and unneeded in everything outside their duties of the American constitution. Which the government doesn't even have the strength to uphold or even recognize… very dangerous!

      LET FREEDOM RING!

    10. Pingback: CBO: Obamacare Will Raise Insurance Premiums Even More than Before … | Money Blog : 10 Dollars : Money Articles.

    11. John Roane Sarasota says:

      Government programs have never cost less then what they promised and always cost more. Why after all these 200 plus years did you expect anything less.

      It never matters who did the study all government programs cost more and give less then promised.

      Doing the same thing over and over and failing each time but expecting a different outcome is the definition stupid.

    12. James Sugden, Colora says:

      I would suspect that the CBO does NOT rely on PwC to do it's research work. Those who insist that any government plan will cost less than projected will have a hard time pointing to an example of that pattern. However,to its credit, health care reform represents a more efficinet version of the usual government pattern. To save energy, the cost increases have begun even before the program has been approved and implemented!

    13. Freedom of Speech TX says:

      Dear Keith Portland OR,

      Please note KAREN's comment. Individual companies do not NET near as much as you might think, because first, you are falling into the trap of deciding "how much is too much". That thinking leads to socialism/marxism. It's called price and wage fixing. Now, you take away risk. And, people who invest in insurance companies want to make a profit. Why else would they invest their money?

      This is really a war against capitalism and – health care is the opening salvo. It is the scapegoat.

      What about medical malpractice reform? Have you wondered why Obama (a lawyer) and the congress (mostly lawyers) have not addressed tort reform? Why do trial lawyers get a pass on all this? Oh, that's right – it's a powerful lobby and one of the democrats largest contributors.

    14. Jerry from Chicago says:

      It's obvious. The CBO is racist!

    15. Tom, Georgia says:

      When taxes are increased, the amount of taxes that are paid using money from the healthcare delivery system revenue streams are increased. That process adds additional cost-of-governments to the healthcare delivery system. If addditional costs are added into the system, the costs must flow through and out embedded in the prices that are paid for healthcare and medical treatment.

      Money that is paid by cosumers for their private medical insurance premiums will be used to pay taxes which in turn will then be used to help fund the so-called "public option" which means that those who choose to participate in the public option will be subsidized by those who retain their private health insurance; including employer provided health (and dental) benefits.

      The question is not whether this insanity will destroy the most capable healthcare system that has ever existed in human history. It will. The question is whether the destruction of our healthcare delivery system is intentional and a major gambit in a plan whose ultimate goal is the total destruction and dissolution of the best nation that has ever existed in the history of man.

      The velvet glove of socialism will–and must–always contain the iron fist of totalitarianism.

      It is not the benefits that are socialized, it is the burden. The iron fist is the essential tool for socializing the burden.

    16. philip says:

      As this shows, each day brings yet another insight as to the agenda of this obama administration: Money/Power/Control. But, we do have a voice- if we choose to use it!

      We all know the problem- massive government coupled with massive liberal policies. We also know the solution- True American Patriots, coming together in solidarity for the cause of Freedom! As we are now, we come together daily on the internet (but no one sees us), we come together on occasion at rallies (but no one counts us), we listen to conservative talk radio and watch conservative TV but once the switch is turned off, how do we use the truth we know to affect others? We live in a visual world, so we must have a visual message, which expresses our Traditional Values and Founding Principles.

      Please go to http://www.WeThePeopleBelieveAgain.org Here you can find the tools to have a positive impact on dozens, if not hundreds of fellow citizens every day. Plus, you can direct a 25% donation to one of several great causes and find links to great information like this one, The Heritage Foundation.

      Stay the Course for America and please visit http://www.WTPBA.org

    17. philip says:

      As this shows, each day brings yet another insight as to the agenda of this obama administration: Money/Power/Control. But, we do have a voice- if we choose to use it!

      We all know the problem- massive government coupled with massive liberal policies. We also know the solution- True American Patriots, coming together in solidarity for the cause of Freedom! As we are now, we come together daily on the internet (but no one sees us), we come together on occasion at rallies (but no one counts us), we listen to conservative talk radio and watch conservative TV but once the switch is turned off, how do we use the truth we know to affect others? We live in a visual world, so we must have a visual message, which expresses our Traditional Values and Founding Principles.

      You can find the tools to have a positive impact on dozens, if not hundreds of fellow citizens every day. Plus, you can direct a 25% donation to one of several great causes and find links to great information like this one, The Heritage Foundation.

      Stay the Course for America and please visit us at W T P B A period organization.

    18. Ben C, Ann Arbor says:

      I for one will be happy when apples are compared to apples and not oranges. Each side "spins" the information to fit their agendas. Debbie Stabenow (D) Michigan believes health care is a "right" and thus obviously an entitlement. Of course her side will present their "data" to support their contention that their plans are cost effective. I don't believe a word she or her cohorts (liberals) say. On the other side (conservatives), I see "data" that appears to be somewhat slanted but more believable given the track record of the federal governement. Since Medicare and Medicade cost way more than predicted and Social Security is about bankrupt (2017 as stated in the Social Security mailer)I have little faith that the Democrats "data" is accurate. I see Cap and Trade and Health Care Reform as nothing more than revenue enhancement plus reelection assurance for Congress. But why should Obama care about all of this – he will be long gone on the post presidential lecture circuit collecting speaker fees while we get stuck with the bills.

    19. Normca says:

      I am afraid some people are simply misinformed. They use words like innuendo and do not have facts to substantiate their glowing words. What they have is the NY Times and MSNBC. Add millions to the rolls and save money. Those nasty insurance companies again. I guess 3% profit is not acceptable and doctors should work for free and not make a profit. First its Big Oil, then Big Pharma, Soft Drinks, and now Big Insurance. Instead of villlanizing everyone who we need, why don't we work with them ? If these bills are so good, why is it being crafted behind closed doors ? And if Price is corrupt, what does that do to the CBO, who was chewed out for telling like it is. Check your facts [unless you really want to be a drone and just repeat what you read in a failing entity]. Oh yes; take an aspirin – you will not need surgery.

    20. billy says:

      Just curious. Of that 3% profit or whatever how much of 3% of 1/6 of our economy add up to? Then tell me what having a health insurance middle man does for us. Its not like they make new life saving products thus needs a free market to spur innovation.

      Also, i find it hard to believe that people defending the health insurers in the name of free market and capitalism is amusing.Sure, there may be 1200 or whatever number of insurers out there but do they all compete? Do they have to? All you have to do is snoop around to many sites and you can easily find out there isn't competition. And if you still don't want to believe that our system of health care is far from a free market then why is it illegal for medicare to negotiate drug prices?

      Hey, its one thing to stand up for what you believe in but going back and forth to believing in free market principles then letting one or two slide because of the D or R stamped on the bill is fake. A lot of both parties are crooks.And until people towing their party line smarten up and make choices based on whats right rather then what your leader says then we will continue to have a crooked government who tries to convince us they have our best interests at heart. Yeah right.

    21. billy says:

      Normca, working with those people(special interests) is what made this mess.Just look at MediGap-D and Advantage.All you need to do is look at campaign contributions to find out how a politician will vote. Bills being crafted closed doors is nothing new.Both parties do it,who gets in just depends on whos in power.

      Also, using cbo numbers when they fit your view, but not when they go against is is being disingenuous,or lying

      The 3% profit thingy, that's about $75,000,000,000.Its expected to almost double by 2019 to $4.5 trillion a year.If you don't think this destroys out economy, kills jobs and makes more and more family's file for bankruptcy do to medical bills then im not sure what can convince you. Saying you care and want to see change isn't enough, from either party.

      Its one thing if i had a choice,like some people say. But providing health insurance to your family isnt a choice. Its as much of a choice as feeding your family or not, or paying for meds or going w/o.

    22. Corners says:

      "A recent study found that 62 percent of all bankruptcies filed in 2007 were linked to medical expenses. Of those who filed for bankruptcy, nearly 80 percent had health insurance."

      You call this American?

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