Reports are that Obamacare could raise average preimums by $4000 or more per family per annum. Up until now we have not heard much from the insurance companies in this whole debate. They’ve been willing to let their surrogates do most of the talking and have been fairly silent themselves (mostly because they are pretty unsympathetic to most Americans). This all changed today with the looming Obamacare vote scheduled to take place tomorrow in the Senate. The industry has hired accounting firm Price Waterhouse Cooper to do some analysis on the Baucus plan, and the results are . . . shocking to say the least.
The biggest result of the accounting audit is that the Baucus Plan/Obamacare, which purports to save money, will actually raise the average premiums for most American familys by $4000 per year.
After months of collaboration on President Obama’s attempt to overhaul the nation’s health-care system, the insurance industry plans to strike out against the effort on Monday with a report warning that the typical family premium in 2019 could cost $4,000 more than projected.
The critique, coming one day before a critical Senate committee vote on the legislation, sparked a sharp response from the Obama administration. It also signaled an end to the fragile detente between two central players in this year’s health-care reform drama.
Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.
The White House’s response was it’s typical non-sequitor, stating:
“Those guys specialize in tax shelters,” said Nancy-Ann DeParle, director of the White House Office of Health Reform. “Clearly this is not their area of expertise.”
Wait, the biggest argument that the White House can come up with is claiming that one of the largest, most respected accounting firms in the world only knows how to come up with tax shelters and they don’t know anything about accounting? Come on, do you guys have an actual response to this? Or, as Allah Pundit suggests, “We can compare that to the White House, whose expertise thus far has been in getting elected, and not much else — certainly not economics, military strategy, or governance.”
$4000 per year is nothing to sneeze at. I’m not sure about the rest of you, but with my budget there is no way I can take an extra $4000 per year hit in insurance premiums. Of course, the poor will be exempt from this, as they are from everything the government does, and the rich can afford to take this hit. So, guess who gets to fund this debactle and who gets hurt by it the most? Yes, the middle-class. Clearly the whole point of this exercise is that they want to make any private insurance so expensive that only the super rich can afford it. Then the Democrats will ride to the rescue with a European style, single-payer health insurance plan and we’ll be well on our way to socialism. Ain’t life grand.
P.S. Please call, write, and e-mail both of your senators today to register your feelings, tomorrow is the big vote.









October 12th, 2009 at 11:08 am
this is sort of off topic, but it’s pretty notable that ostrom won the economics nobel prize. The work she has done with her husband at IU follows closely from the public choice work done by both buchanan and tullock. She’s one of a number of public choice advocates to have recently won this award. A big deal for conservative academic thought.
October 12th, 2009 at 12:06 pm
it will only raise premiums $4,000 for families that work …
not for people who do not work or who work under the table … for them it is free
tch …
you guys are just rac*st
October 12th, 2009 at 3:18 pm
Eventually even the fat, stupid, union auto workers will see the light. ‘course it will have to get a lot worse before that happens, and it will. About half of them have lost their jobs already and the bleeding is nowhere near stopping. To be continued……
October 12th, 2009 at 3:23 pm
Hondo, what is hilarious is the ones who have the most to lose under Obamacare is probably union workers, especially the UAW. They are the ones with the so-called Cadillac plans who will see the biggest tax increase. I don’t understand this alliance between unions and health-care, they will be the big losers. Guess what GM or any fortune 500 company is going to do as soon as a public option is available? They are going to drop their coverage and force people to get on the public system. THAT IS THE WHOLE POINT!!!
So, union workers are going to end up paying a whole lot more for significantly reduced coverage. Oh the irony.
October 12th, 2009 at 3:26 pm
What total malarky. Here we have the insurance companies, who are making OBSCENE profits, whose bottom line has gone up, what, 400% over the past couple decaodes, and they are going to raise premiums? Raise premiums for what? So their CEOs can still get upteen million dollars a year?
This is proof positive that we need a Public Option to compete with the insurance companies, so they can no longer get away with robbing the American economy, and eventually, bringing it to its knees.
October 12th, 2009 at 3:40 pm
Klo, the only problem with your rich money grabbing theory is that the average profit margin in the insurance industry is 3.3%. They might have billions and billions in revenue, but 3.3% profit margin is less then most grocery stores make. So, you can save the populist rhetoric, we ain’t buying it.
October 12th, 2009 at 3:57 pm
These union slobs are still listening to their union bosses and never have been able to think for themselves which explains their current refusal to see the light as you mentioned. Which, BTW, is right on.
October 12th, 2009 at 4:41 pm
4,000 more ? yeah, that will sell.
October 12th, 2009 at 5:19 pm
We have been saying this for months. Any time the government runs a program that should be done in the private sector, it always cost more than they say it will.
Funny how we are not hearing any of the moonbats supporters supporting this.
October 12th, 2009 at 5:43 pm
The “progressives” don’t seem to realize that with the public option even their medical information will be in a govt. database which any decent 7th grader could hack into. Then we will know which university professor has had a penile implant, which liberal carpetmuncher teaching at Radcliffe has had an abortion, which black politician or preacher has been treated for Herpes etc.
October 12th, 2009 at 5:55 pm
Klo
The other problem with your theory is that once theres a public option no company will see any reason to offer their employees insurance. people will percieve the program as free. Everyone will dump their private policy and go for the public one. The private sector will go broke. The public option will eventually go broke due more expenditures than revenues.
This is whats happend in my state and anywhere else a public option was tried.
I wonder how many the private sector employs ? How many will end up taking unemployment while also being on the public plan ?
There will be no private sector anymore, the public option will crash.
The whole country will be without healthcare.
Am I wrong ?
October 12th, 2009 at 5:56 pm
Why do I get moderated everytime I use CLOs name ?
October 12th, 2009 at 5:58 pm
I did a process of elimination the other day and found this to be true.
The guys name in comment # 4 keeps alerting the moderator
October 12th, 2009 at 6:20 pm
Obamacare is a mess. Few want it to pass but the Dems don’t care, they want it to control people and take away our freedoms.
October 12th, 2009 at 6:21 pm
tort reform is the most important weapon to cut costs and the dems are in the pocket of trial attorneys.
October 12th, 2009 at 6:23 pm
who are making OBSCENE profits- KLO
please define obscene profits ?
i thought they had a 3.5% profit margin or after tax profit ?
October 13th, 2009 at 6:18 am
What the dems can’t get thru their heads is the fact that while EVERYBODY hates their insurance carrier they hate the government and politicians much more.
October 13th, 2009 at 7:29 am
Hondo, I really think you are on to something here. The “fat, stupid” middle class doesn’t deserve affordable health care. Either get rich or get out of the way. The funny think is, that insurance companies said they were behind health care reform. Right after Obama’s speech to the joint session(you lie!), AHIP came out and said that what they wanted was essentially the Baucus plan. Read the quote for yourself here: http://www.examiner.com/x-24103-Top-News-Examiner~y2009m10d12-Insurance-industry-reports-that-Baucus-bill-will-raise-health-insurance-premiums
October 13th, 2009 at 7:39 am
Tammy, Quit whinning and get off the dem talking points and into the real world. The govt. cannot manage your health care! Reform is needed but not a govt. takeover. If we get a govt takeover the above statement will ring in your ears. However, you will not be able to get treatment for the tinnitus.
October 13th, 2009 at 7:06 pm
well the government of new jersey set the guidelines for an autoinsurance pool for kids under 18. To sell insurance to adults in the state the insurance companies had to offer auto insuranced to kids and not simply cherry pick the adults and it worked. the premiums were still pretty steep, but doable and the young got insured and able to drive. so what is wrong with that?
October 14th, 2009 at 2:23 am
“According to a new report, the number of homeless people sleeping in New York City shelters has reached an all time high at 39,000 — many of them are children.”
if it is at an all time high, that must mean it was lower under bush