Health reform costs arm and a leg

Published: 2009-12-02 06:51:40
Author: Matt Reed | Florida Today | November 22, 2009

Are you ready for still-higher health-care costs, higher taxes and more expensive private health insurance?

You didn't think health care "reform" came free, did you?

While Congressional Democrats high-five over plans to cover an additional 10 percent of Americans -- a noble and expensive accomplishment -- I've been struck by what Congress and the White House have kept quiet. Namely, their reliance on costly mandates on private health insurers and their lack of effort to reform medical-billing patterns that will continue to raise health-care costs by 6 percent per year.

"I think it's the elephant in the room that no one is talking about because everyone's talking about expanded coverage," said Dr. Peter Weiss, president of Viera-based Health First Health Plans, which counts Harris Corp., Boeing and MIMA among clients.

The breakdown

What's in store for your tax and private-insurance costs depends on your place in life. And insurance costs will hinge on the effectiveness of an "individual mandate" that requires everyone to buy insurance to spread risk and costs. Unfortunately, Congress gutted the mandate by wiping out penalties for noncompliance.

  • Families with children. In the low estimate, families would spend an average of $218 more per year, assuming perfect compliance with the individual mandate, the Lewin Group policy research firm found. "We also estimate that average annual after-tax wages would decline by about $43 per family due to increased spending for health by employers," its analysis of the Senate plan says.

    More likely, a family with 40-year-old parents and two children would see premiums rise by as much as 53 percent, according to an analysis by the WellPoint health-insurance company. Its analysis assumed -- as many economists also predict -- that a weak mandate would add to insurers' books mostly high-cost policyholders with immediate needs.

    Families also will pay more to offset lower rates mandated by Congress for older households.

  • Empty-nesters and retirees. Good news here, sort of. Reforms would force insurers to stop charging Americans significantly higher rates as they age and consume more health care. Premiums for couples 60 and older could drop by as much as 37 percent, WellPoint predicted.

    • Full story