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Health Care Costs on the Rise; Democrats and Liberals Fight Back

10 November 2009 No Comment

healthcare

The past two weeks have been filled with twists and turns in regard to health care reform. Multiple reports and, finally, a committee vote have pushed President Obama’s health care reform tread another step forward.

On Oct. 7, the Congressional Budget Office, the non-partisan agency which provides analyses of legislation and budgets for Congress, released a memo containing their findings on the monetary aspects of the most prominent health care bill to date: the America’s Healthy Future Act of 2009.

The CBO report showed that the bill, sponsored by Congressman Max Baucus (D-Mont.), would cost $829 billion spread out between now and 2019. The memo also showed that the net result of the bill would decrease the overall budget deficit by $81 billion over the same ten year time period.  The report boosts  President Obama’s case, allowing him to keep his pledge that health care reform would not add to the total federal deficit.

In a seemingly timed response, health care industry trade group America’s Health Insurance Plans (AHIP) released a report in opposition of the reform bill. Dated October 12, one day before the bill was set to come up for a vote in committee, the report raised issue with the notion that the bill would actually lower costs of health care to individuals and families.

The report was prepared by PricewaterhouseCoopers, a consulting firm hired by the insurance industry group. The critique claimed that the bill would actually raise the cost of health care $4,000 more than what the cost would have increased under current laws and market trends. Its analysis showed an increase of 178% with no reform, meaning an average family paying $12,300 today, would be paying $21,900 by 2019 with current legislation. According to the report, the same family would be paying $25,900, or an increase of 210%, if the bill were enacted.

The reaction seems to have had two general directions. This is the insurance industry’s first open critique of the President’s health care reform, ending a tentative truce held since meetings before the summer started. Some are taking it as a notion that trade groups are becoming wary of the possibility of passage.

“Now that health-care reform grows ever closer, these health insurers are breaking out the same tired playbook of deception to prevent millions of Americans from getting the affordable, accessible care they need,” Democratic Finance Committee spokesman Scott Mulhauser said in response to the report.

More liberal movements have taken the report to show an even greater need for reform. Different facets of the Democratic Party point to the reports claim which show health care costs would increase 178% over ten years without reform, claiming justification for a need for a public option. They highlight the huge increase in cost without reform, and dismiss the claims of even high costs with the bills passage.

Despite the everlasting drama surrounding the legislation, on Tuesday, October 13, it passed through the Senate Finance Committee on a 14-9 approval. Aside from the lone Republican, Senator Olympia Snowe of Maine, the vote was split evenly down partisan lines.

With the bill out of committee, it is now up to the Democratic Party leadership to combine Senator Baucus’ bill with competing legislation out of the Senate Health Committee in a way that can still muster the 60 votes needed to prevent a Republican filibuster. Getting all required votes will be less of a challenge now that Senator Snowe crossed party lines, making it likely for more Republicans to join her, but creating legislation that will unite the entire Democratic caucus will still be quite difficult.

What do you think of health care reform?

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By: Ben Cohn

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