The Congressional Budget Office (CBO) has released a report showing nongroup market premiums will be higher under the Senate healthcare bill than current law without taking federal subsidies into account.
This could prove problematic for Senate Majority Leader Harry Reid (D-Nevada) as he tries to round up 60 votes to reach final passage this month. The Senate will likely be in session at least one day this weekend. Senator Reid has repeatedly said the Senate will hold votes on weekends, Mondays and Fridays in December to try to complete the bill quickly. Democratic leaders have threatened to shorten the Senate’s holiday break if the bill is not passed in time.
CBO has predicted the measure would increase average nongroup premiums 10 percent to 13 percent by 2016 above what premiums would be if current law remained in place. The change represents an average premium of $5,800 for individual policies and $15,200 for family policies under the proposal.
The increase becomes a 56 percent to 59 percent decrease for the 57 percent of purchasers in the nongroup market that will receive federal subsidies, which totals about 18 million subsidized enrollees. That leaves 14 million coverage purchasers who will pay the higher premiums.
The CBO report said the average premium will be higher, subsidies aside, because the bill will require insurers to cover a “substantially higher share of enrollees’ cost for health care (on average) and a slightly wider range of benefits.”
CBO also determined a 40 percent tax on high-cost “Cadillac” plans will affect 19 percent of employer-based policies by 2016. This could cause difficulty for some senators concerned over the tax hitting middle-income workers.