Health insurers report slams Baucus bill

WASHINGTON, Oct. 12 (UPI) -- The day before a U.S. Senate panel votes on healthcare reform, an insurance industry report said a family premium in 2019 could cost $4,000 more than thought.

Industry officials said they would circulate the report prepared by PricewaterhouseCoopers on Capitol Hill Monday, as well as promote it in new ads. The Senate Finance Committee is scheduled to vote on the bill, backed by committee Chairman Max Baucus, D-Mont.

Administration officials questioned both the timing and authorship of the report, underwritten by America's Health Insurance Plans, an industry trade group, The Washington Post reported.

The report said four provisions in the Senate Finance Committee proposal could increase health insurance premiums above levels projected under current law, including:

-- Insurance market reforms coupled with a weak coverage requirement.

-- A new tax on high-cost healthcare plans.

-- Cost-shifting because of proposed cuts to Medicare.

-- New taxes for several healthcare sectors.

The report said the impact of the provisions would increase the cost of private insurance coverage for individuals, families and businesses above what these costs would be if current law weren't changed.

The analysis showed the current cost of the average family coverage of about $12,300 could increase to approximately $21,900 in 2019 under current law and to $25,900 if the reforms were implemented.

This analysis shows that the cost of the average single coverage is $4,600 today and could to increase to $8,200 in 2019 under current law and to $9,700 under the proposal.

"Those guys specialize in tax shelters," Nancy-Ann DeParle, White House Office of Health Reform director, told the Post. "Clearly this is not their area of expertise."