Insurance industry is ready to take a steady stance against Baucus Bill – MedCity Morning Read, Oct. 13, 2009

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An industry-funded study forecasts the Baucus Bill, expected to be approved by the Senate Finance Committee today, will add $4,000 to family premiums and $1,500 to individual within 10 years, according to The Associated Press.

The White House disagrees and calls the PricewaterhouseCoopers study, “distorted and flawed,” according to the Tribune.

Insurers are standing their ground. President of America’s Health Insurance Plans Karen Ignagni is not opposed to featuring the study in TV ads, but hopes the issues will be resolved amicably. This should be a cause for Democratic concern – widespread fear of higher costs for those already covered helped sink Clinton’s health care plan in the 1990s.

The details of the study will take time for neutral experts to analyze. The bottom line is a question of coverage and cost shifting.

The industry argues that mandating millions of Americas get coverage will drive up the costs for everyone else, since people will wait until they are sick to seek insurance. The legislation bans the ability of insurers to deny coverage for poor health.

The bill is estimated to expand coverage to 94 percent of eligible Americans, up from about 83 percent now. Insurance companies say the number needs to be in the upper 90s, since senators have weakened the fines for ignoring the requirement to get coverage.

Insurers are discussing the possibility of higher premiums for people who postpone coverage or waiting periods for those who ignore a proposed government requirement, according to The Associated Press.

If Baucus passes today, it will be sent to the House and Senate floor. After approval, a conference committee will reconcile differences. The insurance industry is expected to make a move at this stage, the article stated.