Potential Impact of Health Reform on the Cost of Private Health Insurance Coverage

Written By: PriceWaterhouseCoopers Staff

Published In: PriceWaterhouseCoopers

Publication date: 10/01/2009

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Health reform could have a significant impact on the cost of private health insurance coverage.

There are four provisions included in the Senate Finance Committee proposal that could increase private health insurance premiums above the levels projected under current law:

- Insurance market reforms coupled with a weak coverage requirement,
- A new tax on high-cost health care plans,
- Cost-shifting as a result of cuts to Medicare, and
- New taxes on several health care sectors.

The overall impact of these provisions will be to increase the cost of private insurance coverage for individuals, families, and businesses above what these costs would be in the absence of reform.

On average, the cost of private health insurance coverage will increase:

- 26 percent between 2009 and 2013 under the current system and by 40 percent
during this same period if these four provisions are implemented.

- 50 percent between 2009 and 2016 under the current system and by 73 percent
during this same period if these four provisions are implemented.

- 79 percent between 2009 and 2019 under the current system and by 111 percent
during this same period if these four provisions are implemented.

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