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MONDAY, NOVEMBER 23, 2009
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 ANALYSIS 
24

Industry Report Distorts Health Reform Cost

Insurance firms' numbers blindside Baucus bill's backers

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(Newser) – A new report that says the Senate Finance Committee’s reform bill would raise private insurance premiums is riddled with troubling exceptions, writes Jonathan Cohn. The report, commissioned by America's Health Insurance Plans, estimates the costs of premiums over time if the bill is implemented, but it doesn’t take into account the subsidies also implemented under the bill to help families pay for coverage.

So the report distorts the cost picture for many middle- and low-income families. It similarly distorts analysis of the “excise tax”—intended to end the current subsidy for expensive employer-based plans—by assuming employers will merely pay for the same plans they have today, despite the extra cost related to the tax. The whole point of the tax is that it will encourage employers to shop for more sensible plans in order to avoid it, writes Cohn for the New Republic.

Senate Finance Committee Chairman Sen. Max Baucus, D-Mont. smiles as he arrives at his office on Capitol Hill in Washington, Thursday, Oct.  8,  2009.
Senate Finance Committee Chairman Sen. Max Baucus, D-Mont. smiles as he arrives at his office on Capitol Hill in Washington, Thursday, Oct. 8, 2009.   (AP Photo/Harry Hamburg)
FILE - In this Oct. 1, 2009 file photo, Senate Finance Committee Chairman Sen. Max Baucus, D-Mont. gestures on Capitol Hill in Washington.
FILE - In this Oct. 1, 2009 file photo, Senate Finance Committee Chairman Sen. Max Baucus, D-Mont. gestures on Capitol Hill in Washington.   (AP Photo/Harry Hamburg, FILE)
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It's worth keeping in mind that the report comes with some pretty questionable assumptions—and that it comes from a group with its own ideas of what health reform should look like.
- Jonathan Cohn, the New Republic

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24 comments
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Doctor_Zaius
Oct 12, 09 2:53 PM CDT
NEWSFLASH - People with vested interest in status-quo willing to lie, distort and fear-monger to preserve their place at the top of the pyramid. Reply
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+6
IN RESPONSE:
jamerican
Oct 12, 09 3:04 PM CDT
Ever think it could be nobama lying again in order to try to fool some of the ignorant people in this country into thinking his health care plan is less costly to us taxpayers than it really it.
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-6
IN RESPONSE:
osu1067
Oct 12, 09 3:04 PM CDT
"People with vested interest in status-quo willing to lie, distort and fear-monger to preserve their place at the top of the pyramid." Heh, does this also apply to those in control of Congress and the White House right now?
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+1
IN RESPONSE:
Spudsy
Oct 12, 09 5:22 PM CDT
No doubt that there are some in Washington that do that, osu1067. But if you think that it is only on the Dem side of the aisle then you are a fool.
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+1
alkaseltzersammich
Oct 12, 09 2:56 PM CDT
"Sorry. We were too busy making $25 million in compensation a year to tell the truth." ~Anonymous Insurance Exec Reply
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+10
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