Insurance Quotes & Advice

Later this week, the Senate’s Finance Committee will vote on the proposed healthcare reform bill, estimated to cost $829 billion over 10 years.  If the committee approves the measure, which it is expected to, the bill will then be merge with the version that has already been passed by the Senate’s health committee.

On the heels of this vote, a trade association made up of a number of health insurers, released a report sharply criticizing the reform bill, stating that the current legislation would lead to a rise in insurance premiums of $4,000 by 2019.  The White House and consumer groups blasted the America’s Health Insurance Plans’ report calling it misleading.

While the insurance industry had pledged support earlier in the year for healthcare reform, that support has appear to have wavered in recent months.  Insurers are at odds with Congress over a weak mandate to purchase coverage in exchange for the abandonment of the practice of denying coverage and charging higher premiums for individuals with pre-existing conditions.

While the Senate version doesn’t contain the much criticized “public” option, there is a strong possibility that the House version will contain it and it will be interesting to see what happens the committee to reconcile the two versions meets.

The recession hit business hard and they are looking for ways to cut costs.  One of the ways is to shift more of the burden for healthcare benefits to their employees.

Healthcare costs have spiraled out of control with a recent study from the Kaiser Family Foundation finding that premiums for the average family have risen 131% over the last decade.  With premiums far outpacing inflation, it’s a trend that many Americans won’t be able to keep up with for long.

When asked about their plans for next year, 21 percent of offering firms say they are “very likely” to raise workers’ premium contribution next year, and 16 percent say they are  “very likely” to raise deductibles.  Just 4 percent say they are “very likely” to restrict eligibility for coverage, and 2 percent say they are “very likely” to drop health coverage altogether.

Nearly 7 million Americans have lost their jobs already during the recession and even with COBRA insurance allowing most to keep up with their coverage, many are finding the burden just too much to bear.  Both the employed and recently unemployed are finding it necessary to cut their health benefits in order to make ends meet.

Although the healthcare debate has been controversial at times, the majority of Americans are in support of healthcare reform.  While it seems the debate has stalled somewhat, the President is still hoping that something can be done by the end of the year.

It is vital that Congress finds a way to get cost under control.  We already have a sizable portion of the population unable to afford health insurance, if we have another decade like the last, that percentage will rise appreciably.

President Barrack Obama gave an address before Congress last night before a nationally televised audience.  An estimated 32 million viewers tuned in as the President tried to reinvigorate his stalled healthcare reform plan.

Once again he stated he favored the public option but that it wasn’t a deal breaker to move the bill forward.   This contrasts with House Majority leader Nancy Pelosi’s speech last month in which she stated, “There’s no way I can pass a bill in the House of Representatives without a public option.”

Public support for Obama’s healthcare reform has sagged in recent weeks and divisions within his own party could derail his efforts, notwithstanding the lack of Republican support thus far.  Republicans have been dead set against the public option from the start, due to the cost such a measure would entail.

The President was hoping the reform bill would be passed before the year is out but there is still a lot of uncertainty on whether or not Democratic leaders can reach an agreement with their divisive party members.  There appears to be little chance that any bipartisan support will be forthcoming the way the bill currently stands and Democrats appear ready to move forward with a single party bill but the death of Senator Kennedy last month leaves them just short of the 60 votes needed to circumvent a Republican filibuster.

Despite the expected $1 trillion price tag over the next decade for the plan, Obama pledged that not one dime would be added to the deficit but finding ways to fund the reform could be problematic at best.  It’s readily apparent that reform is needed and that the spiraling healthcare spending by the government needs to be reined in.