Return to the blog »

Don’t just take our word for it

Posted by: Kate Blocher on Dec 02, 2009

As the Senate opened debate this week on the Patient Protection and Affordable Care Act, proponents of reform received a big boost with the release of two new reports showing that the Senate bill will lower premiums and improve affordability for millions of American families.

Jonathan Gruber, a leading MIT economist, released an analysis  of the Senate health reform bill. Gruber concluded that Americans who purchase individual coverage in the reformed market will not only pay less than they would in an unreformed market, but they will also receive better coverage.

After studying the CBO's analysis of the bill-as well as evidence from Massachusetts, which has been working to achieve universal coverage since 2006-Gruber concluded that Americans buying insurance in the individual market would be better off with health reform. Further, an October 2009 AHIP report showed:

[T]he average individual premium in the state [MA] fell from $8537 at the end of 2006 to $5143 in mid-2009, a 40% reduction while the rest of the nation was seeing a 14% increase.

Gruber concludes that,

... for those facing purchase in the non-group market, the ... bill will deliver savings ranging from $200 for singles to $500 for families in today's dollars - even without subsidies.

The Congressional Budget Office (CBO)'s analysis confirmed that the Senate health bill will lower premiums and make health care more affordable for millions of American businesses and families. The report states:

[The bill will] lower health insurance costs for millions of Americans by reducing premiums by 14 to 20 percent for people in the individual market when comparing plans that provide equivalent coverage.

The report also shows that Americans who currently receive coverage through their employer will see little change in their premium costs unlike the expected increase if the status quo remains. Costs will be lowered for small businesses and working families and the legislation will allow for more choice, greater coverage, and the opportunity to keep your current insurance if you like it.

Senator Bayh, a moderate Democrat from Indiana who commissioned the report was pleased with the results and remarked:

"This study indicates that, for most Americans, the bill will have a modestly positive impact on their premium costs.... For the remainder, more will see their costs go down than up."