Senate Health Bill Reduces Premiums on Average, Report Says

(AP Photo/Harry Hamburg)
Without taking into account subsidies, Senate Majority Leader Harry Reid's reform package would raise premiums on non-group insurance policies by an average of 10 percent to 13 percent by 2016, according to the nonpartisan Congressional Budget Office. About 57 percent of consumers in the non-group market are expected to receive subsidies, however, and for those people, average premiums would drop by as much as 59 percent. The bill would have a much smaller impact on the cost of small group and large group insurance, which account for 83 percent of the market.
Incoming White House Communications Director Dan Pfeiffer wrote on the White House blog that the CBO report "contains more good news about what reform will mean for families struggling to keep up with skyrocketing premiums under the broken status quo."
Pfeiffer highlighted the CBO's conclusion that consumers in the nongroup market will see lower premiums, as well as the expected decrease in premiums for those who have employer-based coverage. Also, Pfeiffer wrote, "Americans who currently struggle to find coverage would see lower premiums because more people will be covered."
Pfeiffer emphasized that the CBO concludes that average premiums will rise in some cases because people will have more options and therefore choose to buy better insurance.





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