Lots of chatter about the insurance industry report claiming that the Baucus health care proposal will raise premiums 111% over the next ten years. Obviously, any report commissioned by special interest should be questioned. It's just worth pointing out that the special interest group in this particular case are the folks who will be setting the premiums to begin with. Yikes.
The logic put forth is that there is not enough incentive to force people to maintain coverage (low fines), and since insurance companies won't be allowed to turn away those already sick, the incentive is to now pay the fine instead of the insurance premium. Simply go out and get coverage whenever you get sick and save a boat load of cash. The reduction in revenue gets passed down to the consumer in order to make up the difference, hence the increases.
Supporters of the health care bill argue that the report can't be trusted because insurance companies stand to make less money if the bill goes through. While true, that's entirely the point. The report basically says what insurance companies are going to do in response to making less money. Remember, again, they set the premiums.
Regardless, of all the various proposals the Baucus bill does seem to be the only one that's even remotely considerable (I'm being kind... I'm more of a shopping mall guy.) There's no public option and from a budget perspective it's also more financially sound (according to the CBO, though the director is on record saying they did not have adequate time to fully work out the Net). Unfortunately, it also has no chance in hell of being what actually gets passed. And I think it goes without saying that something is going to get passed.
Anyone want to take bets on just how much of a train-wreck the bill that comes out of conference committee is going to be? ;)
The logic put forth is that there is not enough incentive to force people to maintain coverage (low fines), and since insurance companies won't be allowed to turn away those already sick, the incentive is to now pay the fine instead of the insurance premium. Simply go out and get coverage whenever you get sick and save a boat load of cash. The reduction in revenue gets passed down to the consumer in order to make up the difference, hence the increases.
Supporters of the health care bill argue that the report can't be trusted because insurance companies stand to make less money if the bill goes through. While true, that's entirely the point. The report basically says what insurance companies are going to do in response to making less money. Remember, again, they set the premiums.
Regardless, of all the various proposals the Baucus bill does seem to be the only one that's even remotely considerable (I'm being kind... I'm more of a shopping mall guy.) There's no public option and from a budget perspective it's also more financially sound (according to the CBO, though the director is on record saying they did not have adequate time to fully work out the Net). Unfortunately, it also has no chance in hell of being what actually gets passed. And I think it goes without saying that something is going to get passed.
Anyone want to take bets on just how much of a train-wreck the bill that comes out of conference committee is going to be? ;)
