Premiums Likely to Soar Under Obamacare

By Kevin Spak, Newser Staff

Posted Sep 24, 2009 9:27 AM CDT

(Newser) – Current health care legislation would require every American to buy health insurance, but would do little or nothing to control the skyrocketing premiums they’d have to pay, the LA Times reports. Versions of the bill try to address the problem indirectly—with a public option in the House bill and nonprofit co-ops in Baucus’s Senate bill—but no one is proposing the direct premium controls states have on other mandated insurances, like auto insurance.

And while skyrocketing premiums could stir the market, boosting competition and reining in costs, that would be a long road. And beyond premiums, neither bill is poised to regulate what doctors, hospitals, and drugmakers could charge, a measure used to control costs overseas. “You can’t restrain premiums unless you restrain medical costs,” said the head of an insurance lobbying group. “So far, members of Congress have been allergic to that.”

President Barack Obama gestures while delivering remarks during a health care rally, Thursday, Sept. 17, 2009, at the University of Maryland in College Park, Md. (AP Photo/Rob Carr)

Senate Finance Committee Chairman Sen. Max Baucus, D-Mont., listens on Capitol Hill in Washington, Wednesday, Sept. 23, 2009, as the committee continued working on the health care legislation. (AP Photo/Harry Hamburg)

Senate Finance Committee Chairman Sen. Max Baucus, D-Mont. speaks to reporters during a news conference on health care legislation, Wednesday, Sept. 16, 2009, Capitol Hill. (AP Photo/Susan Walsh)

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OTHER STORIES ON OUR RADAR

health care costs • health insurance premiums • health care reform • Max Baucus • public option • mandate

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

Threats Against Lawmakers Hit New High in 2010

Emotions ran high during health reform debate

States Want OK to Cut Medicaid—Without Penalty

Governors battle Washington over measure in health reform law

McD's: We'll Dump Worker Plans Over Health Reform

Chain wants waiver from 'mini-med' spending rules

Companies Shift Health Costs to Employees

Even as insurance premium growth slows

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Newser By Users

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What is Newser?