Results tagged “health insurance” from EdLabor Journal

An article by the AP in today's Los Angeles Times reports on a recent survey by the Kaiser Family Foundation. The survey, taken before the Affordable Care Act became law found that individual health insurance premium hikes far exceed group plan hikes with the increases averaging 20% for individual coverage.

The AP says:

The nonprofit foundation, which is separate from health insurer Kaiser Permanente, said recent premium hikes for individual coverage averaged 20%. Some customers were able to switch plans and pay less so people paying on their own actually wound up paying 13% more on average.

That hike tops last year's average 5% annual increase for employer-sponsored family coverage and almost unchanged premiums for employer-sponsored single coverage, though foundation Vice President Gary Claxton said the comparisons come with qualifications.

The White House highlights the importance of reform on their blog:

The Affordable Care Act will help address this problem and strengthen the health insurance system for everyone. The law starts by helping to prevent unreasonable premium increases by requiring insurance companies to publicly justify unreasonable increases. Companies will also have to spend more of your premium dollars on medical claims, not salaries and overhead. If insurance companies raise rates too high between now and 2014, they could be excluded from the new health insurance exchanges and lose access to millions of new customers. And we are encouraging states to crack down on premium hikes and providing states with $250 million in grants to do so.

Learn what states are already doing to protect consumers against unjustified rate hikes.

Also, watch President Obama announce new benefits for consumers in a speech in the East Room at 11:45 AM ET.

If you have additional questions, send them to About.com and watch HHS Secretary Sebelius answer them today at 3:15 ET.

A New York Times' editorial today notes that the health care reform bill is already changing the behavior of the health insurance companies and that is a big win for consumers.

Americans are already starting to see the benefits of health care reform. The new law requires health insurance companies — starting in September — to end their most indefensible practice: rescinding coverage after a policyholder gets sick. In recent days insurers and their trade association have rushed to announce that they will end rescissions immediately.

That is very good news for the thousands of people who each year pay their premiums but lose their coverage just when they are likely to run up big medical bills.

...

The insurers were wise to short-circuit the criticisms and end rescissions now. This follows a recent agreement by many companies to start letting dependents stay on their parents’ policies until age 26, which isn’t required until September. Under pressure from the White House, the industry has also agreed to cover children with pre-existing medical conditions as soon as new rules are issued.

Many of the other major provisions of reform don’t kick in until 2014, but it is already changing the behavior of insurers. That means more security for many Americans who might otherwise find insurance unaffordable or unavailable.

Additionally, consumers in California in the individual market will see a reprieve of the 39% increase in their premiums by Anthem Blue Cross.

WellPoint Inc. said it would revise its request for steep rate hikes in California's individual market, after a state regulator said it found flaws in the company's application.

The proposed premium increases by the company's Anthem Blue Cross unit would have affected more than 700,000 consumers, who would have seen their rates go up by as much as 39%.

Learn more about the benefits of health insurance reform for you and your family.

On this blog, we have highlighted many of the benefits to all Americans under the new health reform law. Today the New York Times joins in, highlighting another key change, free preventative care under new plans. The new health reform law requires new private plans to cover preventive services with no co‐payments and with preventive services being exempt from deductibles.

As the New York Times reports:

The new law also aims eventually to improve health insurance for everyone. By now you have probably read or heard about big changes like the rules that will require insurers to cover everyone who applies, regardless of health status, and forbid them from dropping people when they get sick.

You may not yet be aware, though, of another notable improvement to insurance, a change that could save a consumer or family hundreds of dollars a year. Under the new law, insurers must offer preventive services — like immunizations, cancer screenings and checkups — to consumers as part of the insurance policy, at no additional out-of-pocket charge.

The idea is that healthy Americans will be less costly Americans.

“This is transformative,” says Helen Darling, president of the National Business Group on Health, a nonprofit organization for large employers. “We’re moving from an insurance model that was based on treating illness and injury, to a model that’s focused on improving an individual’s health and identifying risk factors.”

The trend toward offering free preventive care has been gaining steam for a decade among large companies that provide employee health benefits. “Employers recognize that if they want to control costs, they have to persuade their workers to be healthier, including their children,” Ms. Darling said.

Three out of four large companies now offer free preventive health services to their workers, according to a 2009 survey by Mercer, a benefits consulting firm. Smaller employers, though, and individual health plans have been less likely to offer free care of any type.

Learn more about the new health reform law and how all Americans will benefit. Also, see this PDF for more information about preventing disease and improving the public's health.

This year, President Obama and a Democratic-led Congress have:

ALLOWED EXTENDED COVERAGE UNTIL AGE 26 THROUGH YOUR PARENTS: Reform allows you to stay on your parents’ health care plans until your 26th birthday (PDF). Between now and 2014, this only applies if your employer doesn’t offer you coverage. Beginning in 2014, it applies to all young people, even if you get insurance through your job. This will help to cover the one in three young adults who are uninsured.

LOWERED YOUR COSTS WITH FREE PREVENTATIVE CARE FOR BETTER HEALTH: Reform means free preventive care to all people insured under new plans (PDF), and invests in preventing illness and disease instead of just treating them when it’s too late and costs more. Simple prevention can stop a small health problem from getting worse as you get older.

GIVEN YOU NEW PATIENTS’ RIGHTS THAT SAVE YOU MONEY: This year, reform eliminates lifetime limits on how much insurance companies cover if you get sick, and tightly restricts yearly limits (PDF). In 2014, reform caps what insurance companies can force you to pay in co‐pays & deductibles, bans "gender rating" that allows women to be charged more for the same coverage, and bans new group plans from having eligibility requirements that have the effect of discriminating in favor of higher wage employees—who tend not be younger workers.

GIVEN YOU SECURITY THAT YOUR  HEALTH CARE IS NOT TIED TO A JOB: Reform means affordable health insurance is available to those without job‐based coverage, starting in 2014, and provides substantial premium assistance (PDF) to those who still can’t afford it. Young adults are just starting jobs and careers, and often don’t have access to job‐based coverage. Even when they do, they often can’t afford health insurance—or must endure a waiting period as a new employee.

ENSURE YOU HAVE HEALTH CARE WHEN YOU NEED IT MOST – WHEN YOU'RE SICK: You can no longer be dropped from your plan if you get sick. If you have a “pre‐existing condition,” beginning in 2014, you can no longer be denied coverage or charged higher rates (PDF) —and between now and 2014, you can enter an interim high‐risk pool to get insurance. This year, discrimination is banned for children under age 19 who have pre-existing conditions.

PROVIDED YOU A CHOICE OF COMPETITIVE PRICES AND PLANS: Reform creates Health Insurance Exchanges, or marketplaces (PDF), you can shop in if you don’t get insurance through your job. Starting in 2014, you get the benefits of group purchasing power like big businesses have.7

MADE IT EASY WITH ONE-STOP SHOPPING: Insurance "Exchanges" or marketplaces will allow you to simply and easily compare prices and health plans online (PDF) and choose what’s right for you. The typical young adult risks losing coverage when you change jobs, move, or hold a part‐time or temporary job. Under reform, it doesn’t matter.

PAID FOR REFORM SO YOUR GENERATION’S NOT STUCK WITH THE BILL: Health insurance reform is actually projected to lower the deficit by $1.3 trillion (PDF) over the next two decades. It lowers health care costs over the long term—so it makes sense it lowers the cost to taxpayers.

Chairman George Miller wrote two op-eds today about how the reforms to federal student loans fits well with the budget reconciliation and health insurance reform package being considered in Congress.

In the Richmond Times-Dispatch, Chairman Miller said:

If Congress makes the right call this week, students and taxpayers will win out.

In the coming days, the House and Senate will take a critical up or down vote on historic health insurance reforms. Tied to them will be the most significant reform of our federal student loan program in a generation. It will make federal aid more effective and cost-efficient for students, families, and taxpayers, without increasing the deficit.

Congress should support both measures.

In the San Francisco Chronicle, Rep. Miller wrote:

Our bill is good for taxpayers. It would eliminate these needless subsidies and instead have the government initiate student loans, as it does today, and private banks service them. Consider that the government now funds 88 percent of all federal student loan volume. There's simply no reason to keep giving banks a handout.

Our bill is good for students. The federal government has already proved to be a more reliable lender for students in the midst of economic instability. All of the savings generated from switching to direct lending will go to help students pay for college and reduce our deficit.

Our bill is good for jobs. It would preserve private-sector jobs by allowing banks to compete for loan servicing contracts - and could even bring overseas jobs back home. Unlike loans made by banks, direct government loans must be serviced by U.S. workers.

Today's New York Times editorial asks, "what happens if Congress fails to enact legislation. Are [Americans] really satisfied with the status quo? And is the status quo really sustainable?"

It ends with:

If reform is defeated, it seems likely that most of the proposed experiments designed to cut costs — first within Medicare and then throughout the rest of the health care system — will die as well. The legislation needs to be passed to establish a structure to force continuing improvement over the years. That is the best chance of restraining soaring medical costs that threaten the solvency of families, businesses and the federal government.

Any change as big as this is bound to cause anxiety. Republicans have happily fanned those fears with talk of “dangerous experiments” on the “best health care system in the world.” The fact is that the health care system is broken for far too many Americans. And the country cannot afford the status quo.

The USA Today and New York Times both highlight how the status quo is unacceptable in our health insurance system.Costs are rising at double-digit rates and eating into workers' wages. Doing nothing would mean family budgets crippled, businesses falling behind and state and federal governments going broke. But that doesn't have to be the case. The Affordable Health Care for America Act ensures affordability for the middle class, accountability for insurance companies, and accessibility for all Americans.

As the USA Today says:

The purpose of insurance is to spread risk as widely as possible, at the lowest cost for everyone in the insurance pool. That's exactly what health bills currently stalled in Congress would do by requiring everyone to buy coverage, and helping lower-income people afford the premiums. Costs would be stabilized; everyone would be protected.

In exchange for millions of new customers, insurance companies agreed to quit doing many of the things that make people hate them, such as refusing to cover people with pre-existing conditions and limiting coverage in ways that can bankrupt people when they become seriously ill. Having a larger, more stable group of customers would also reduce the need for abrupt and massive premium hikes.

Health reform legislation would also set up online exchanges where individuals and small businesses could buy policies. The medical insurance market would become more competitive: Companies couldn't turn applicants down, so it would be easier to jump to a different insurer if one hiked rates exorbitantly.

Further, the measures would require insurers to spend at least 80% of their premium income on paying claims, instead of on administrative and marketing costs. California's requirement is now 70%.

Learn more about the health insurance reform bills before Congress and how they will improve Americans access to affordable health care and increase accountability for health insurance companies.

In the New York Times editorial this morning, Don't Give Up Now, the editorial board argues that:

Congress is achingly close to passing legislation that would cover most uninsured Americans and provide much more security for all Americans — guaranteeing that if they lose their jobs they will be able to buy affordable policies and can’t be denied coverage because of pre-existing conditions.

If the Democrats quit now, so close to the goal line, the opportunity for large-scale reform could be lost for years. Meanwhile, the number of uninsured, currently more than 46 million, will keep going up and the cost of health care will continue to soar.

Chairman Miller made the same point in his op-ed, health insurance reform remains critical to economic growth. "Health care costs are unsustainable; they’re still crushing families, small businesses and large companies. When people lose their jobs they lose their health insurance. People with jobs and who want coverage but find out they have a pre-existing condition still can’t get coverage. Businesses large and small come before Congress every day and tell us how they’re going to have to drop coverage for their employees or go out of business."

And Americans know this intuitively. A new poll by Kaiser Family Foundation found that although Americans are divided about health insurance reform proposals overall, they become more supportive when told about key provisions. The poll concluded that "majorities reported feeling more favorable toward the legislation after learning about key elements such as the availability of tax credits for small businesses, the creation of health insurance exchanges, the inability of insurers to deny people coverage because of pre-existing conditions and the move to close the Medicare drug benefit’s 'doughnut hole.'”

Both the Senate and House bills include all the above provisions and many more to ensure affordability for the middle class, accountability for insurance companies, and accessibility for all Americans. Learn more about the House's Affordable Health Care for America Act.

For the past year, the Democrats have been working tirelessly to reform health insurance yet, the GOP struggles for consensus on health care according to a report on NPR today.

“But there’s just one problem, says health policy analyst Len Nichols of the nonpartisan New America Foundation. If you take most of the ideas that Republicans are shopping around at the moment, ‘then we’re back to policy that, frankly, was rejected by Republicans when they had a majority”

Meanwhile Democrats in the House and the Senate have each produced legislation that will:

• Ensure that 30 to 35 million Americans will have health insurance coverage.
• Prevent insurance companies from discriminating or charging more because of a preexisting condition.
• Prevent insurance companies from dropping coverage during life-saving treatment.
• Ensure that laid-off workers won't lose insurance.
• Eliminate annual or lifetime caps on coverage.
  

Chairman Miller and House Leaders are committed to crafting the strongest final bill possible for American families.

In September a survey of business leaders by Business Forward found that:

Nearly 90% of those polled cite health care costs as a major concern, more than cite taxes, government regulation, labor costs or energy costs.

Without reform, 86% of those polled believe that health care costs will continue to rise in the next five years, and 55% believe it will go up "a lot." If costs continue to rise as expected, nearly 9 out of 10 business leaders expect to raise their employees' deductibles and copayments. Nearly 8 out of 10 expect to cut benefits. And nearly one in three expects to lay off employees.

Moderate think-tank, Third Way, released a report today entitled 12 Ways Health Reform Will Tackle Runaway Costs. By looking at both the House and Senate bills, they were able to conclude that there would be significant savings for businesses and workers under these reforms.

For American employers and workers:

Over the next 15 years, American businesses would collectively spend $637 billion less on their share of health insurance premiums, and their workers would save a collective $177 billion under the Senate bill. For a typical business with 500 employees, the cost of coverage would be $2.5 million less than it would be otherwise over 15 years. In other words, these reforms will slow the annual growth rate of costs for job-based health care coverage over the next decade and a half from a projected increase of 5.8% to 5.0% per person. For American businesses, these savings will translate directly into higher wages for workers, more money to expand and invest, and a greater ability to succeed in a fiercely competitive global marketplace. For workers, these savings will lead to coverage that is more stable and more secure.

Savings from Reform: 2010 through 2024

	Projected total spending	Projected spending under reform	Total projected reductions in spending from reform
Aggregate spending on employer share of premiums for job-based coverage	$14.55 trillion	$13.91 trillion	$637 billion
Aggregate employee share of premiums for job-based coverage	$4.04 trillion	$3.86 trillion	$177 billion
500-person employer offering coverage	$56.4 million	$53.9 million	$2.5 million

We encourage you to read the report as well as learn about the cost of inaction and how health insurance reform helps small businesses.

The USA Today has a column by Steven Findlay, a senior health policy analyst at Consumers Union (of Consumer Reports fame), that busts 4 of the most common myths about health insurance reform now before Congress.

He says:

1. It's not a government takeover of health care.
2. It's highly unlikely that your existing coverage is going to cost more under this legislation than it would otherwise over the next 10 years.
3. Relatedly, the legislation is not going to bust the budget.
4. Medicare is not being sacrificed on the altar of coverage expansions for the under-65 folks.

H.R. 3962, the Affordable Health Care for America Act, is a uniquely American solution to ensuring affordability for the middle class, accountability for insurance companies, and accessibility for all Americans.

Hallmarks of this reform are increasing choice for consumers and competition for insurance companies, reducing the deficit and ensuring the solvency of Medicare and Medicaid while improving the quality of care for every American.

We encourage you to read the entire USA Today column, learn more about the Affordable Health Care for America Act, and educate yourself on some of the other myths surrounding this reform effort.

A report by the General Accountability Office today says that it found "extraordinary price increases" in brand-name drugs. Those increases put an additional burden on sick and struggling families.

According to Reuters:

Prices for hundreds of brand-name drugs have soared since the beginning of the decade, especially those that treat depression, infections and heart disease, according to a U.S. government report on Monday.

The nonpartisan General Accountability Office said it found "extraordinary price increases" for 321 brand-name drugs, with prices jumping by 100 percent to 499 percent -- and in a few cases by more than 1,000 percent.

The number of drug price increases more than doubled from 2000 to 2008 with most drugs maintaining their higher prices over time, the investigative arm of Congress said.

The Affordable Health Care for America Act has multiple provisions to protect consumers and taxpayers from rapid drug price increase.

For consumers, the Affordable Health Care for America Act:

• closes the Part D donut hole by $500 in 2010 and eliminates the donut hole entirely by 2019. This protects seniors by ending the gaps in coverage that force them to pay the full cost of their drugs. For patients who are able to switch to lower-cost generic drugs, H.R. 3962 clarifies that Part D plans can offer a free generic prescription fill when a Part D enrollee switches to the generic.
• requires the Secretary of the Department of Health and Human Services (HHS) to negotiate with Part D manufacturers for lower prices, providing new leverage to help control Part D drug price increases.
• requires new transparency in drug pricing for plans in the Exchange that use pharmaceutical benefit managers (PBMs). This will reduce waste, fraud, and abuse and give patients more information about drug prices and spending.

For taxpayers, the Affordable Health Care for America Act:

• expands and increases the Medicaid drug rebate, which requires that manufacturers pay a rebate to cover cost increases that exceed the inflation rate. These payments will protect taxpayers from price increases that occur before or after the health care reform legislation goes into effect.
• contains new Part D rebates that help cut the cost of providing drugs for dually eligible and low-income enrollees. These Part D rebates are based on the Medicaid rebates. They will save taxpayers billions of dollars each year.

These reforms of health insurance are only a few of the many benefits for consumers and taxpayers. We encourage you to read the GAO report, learn more about how H.R. 3962 controls drug prices and improves Medicare Part D, or more about H.R. 3926, the Affordable Health Care for America Act.

The LA Times highlights a new report (pdf) by Harvard and USC economists that say health insurance reform legislation being considered by Congress would slow cost increases and free up money for companies to raise wages and hire more workers.

The LA Times says:

Wading into the hotly debated issue of whether the legislation is a job creator or a job killer, researchers from the two universities say that the reforms under consideration would slow the rate of cost increases and free up money for companies to raise wages and hire more workers.

Specifically, healthcare savings could be achieved through proposals for greater competition in insurance markets, better coordination of care and shrinking administrative expenses, they said in a report to be released today. With those changes, employers could then reallocate money now spent on ever-growing premiums to other business priorities.

According to the study (pdf), it combines previous works by Cutler and Sood to forecast the job-creating effects of health care reform. Specifically, the study combines Cutler’s work demonstrating that reform will slow health care cost growth with Sood’s work demonstrating that every 10 percent reduction in excess health care cost growth – a decrease in cost growth from 2.2 percentage points above GDP to 1.98 percentage points – leads to about 120,000 more jobs.

And just where would one find those new jobs?

The LA Times says:

The Harvard-USC economists concluded that industries with high rates of employer-sponsored insurance -- including manufacturing, utilities and financial services -- would see some of the largest employment gains.

"If you have a strong bill that will promote control of healthcare costs, there will be an effect on the number of jobs," said Neeraj Sood, director of international programs at USC's Schaeffer Center for Health Policy and Economics.

The study concludes (pdf) that:

• Health reform will create up to 4 million jobs in the next ten years: The paper finds that health care reform could increase the number of jobs in the United States by about 250,000 to 400,000 per year over the coming decade.
• Reform will create jobs across industries: By 2016, reform will create more than 200,000 new jobs in manufacturing and nearly 900,000 jobs in services.

The work of reconciling the Senate and House bills is no easy task, but yesterday after a meeting at the White House, Speaker Pelosi was clear that the final product would have "a triple-A rating: affordability for the middle class, accountability for the insurance companies, and accessibility to many more people in our country to quality, affordable health care."

Reuters reported on the meeting:

Speaker of the U.S. House of Representatives Nancy Pelosi said on Wednesday that any final U.S. healthcare bill must hold insurance companies accountable and be fiscally responsible.

"We all are committed to the fiscal responsibility that has to accompany this bill," she told reporters after meeting at the White House with President Barack Obama and the chairmen of House committees involved with the bill.

The House bill, The Affordable Health Care for America Act [H.R. 3962], reduces the deficit and ensures the solvency of Medicare and Medicaid. The legislation will be entirely paid for – it will not add a dime to the deficit. It will also put Medicare and Medicaid on the path to a more fiscally sound future, so seniors and low-income Americans can continue to receive the quality health care benefits for years to come.

• Pays for the entire cost of the legislation though a combination of savings achieved by making Medicare and Medicaid more efficient – without cutting seniors’ benefits in any way – and  revenue generated from placing a surcharge the top 0.3 percent of all households in the U.S.(married couples with adjusted gross income of over $1,000,000) and other tax measures.
• The Congressional Budget estimates the bill will reduce the deficit by at least $100 billion over ten years.
• Estimates also show the bill will slow the rate of growth of the Medicare program from 6.6 percent annually to 5.3 percent annually.

Learn more about paying for reform and strengthening Medicare within the Affordable Health Care for America Act.

With the goal of a final bill that ensures affordability for the middle class, accountability for insurance companies, and accessibility for all Americans, Chairman George Miller has been working with House Leadership and the chairs of the Ways and Means Committee and the Energy and Commerce Committee to craft final health insurance reform legislation.

Never before have we as a nation been this close to ensuring that every American has access to quality and affordable health insurance coverage.  The House and the Senate have each produced legislation that will:

• Ensure that 30 to 35 million Americans will have health insurance coverage.
• Prevent insurance companies from discriminating or charging more because of a preexisting condition.
• Prevent insurance companies from dropping coverage during life-saving treatment.
• Ensure that laid-off workers won't lose insurance.
• Eliminate annual or lifetime caps on coverage.
  

Chairman Miller and House Leaders are committed to crafting the strongest final bill possible for American families.


Watch Chairman Miller discuss health reform on the Ed Show (MSNBC) on January 5:



Read more about the impact of health reform:

• News of the Day: If health care bill passes, some changes would start fast
• News of the Day: Sick, without a safety net
  

Read more about the House's Affordable Health Care for America Act

While much has been made about the differences between the House-passed and Senate-passed health insurance reform bills, the LA Times points out that both bills have significant consumer protection reforms.

In their story, Sick, without a safety net, they say:

But no one is talking about dropping the kinds of insurance reforms that will open a new chapter in the lives of sick people like him: those with mental illness, heart disease, cancer, diabetes -- chronic ailments that touch almost every family in America. Those patients are the ones most likely to lose coverage because their policies impose lifetime limits, or because they have, in industry parlance, a "preexisting condition."

Their pain may continue, their premiums may be high, their diseases could remain incurable, but the legislation President Obama is expected to sign into law next year will almost certainly ensure they have access to health insurance.

While explaining these important reforms, through the story of Mr. Parks Johnson and his struggle with bipolar disease, they explore the larger issue of health insurance companies rejecting coverage of the the very sick.

Johnson had hit a wall that affects an estimated 46 million people in America who are without health insurance. In his case, no insurance company would take him because he was already sick, even though his father and his boss were willing to buy him a policy.

The law protects people with preexisting conditions if they are covered by group plans provided by their employers -- people like Johnson's mother. But there are no such protections for those looking to buy individual coverage. More than a third are denied, according to data from the Centers for Disease Control and Prevention.

Learn more about the House-passed insurance reform bill and the important consumer protections contained within it.

Rep. George Miller, Chairman of the Education and Labor Committee, delivers his comments during the floor debate on H.R. 3962, the Affordable Health Care For America Act on November 7, 2009.



Rep. George Miller, Chairman of the Education and Labor Committee, delivers a rebuttal to the proposed Republican amendment during the floor debate on H.R. 3962, the Affordable Health Care For America Act, on November 7, 2009.

Big news yesterday as the nation's largest senior citizen group AND the nation's largest organization of doctors both offered support for the Affordable Health Care for America Act.

The Los Angeles Times reports:

The [AARP], which has been pushing for a health overhaul for more than a year, had withheld a formal endorsement of any of the healthcare bills being developed by congressional Democrats.

That endorsement was followed by an announcement at about 10 a.m. Pacific time from the American Medical Assn. in which the nation's largest doctors group voiced its support for the measure.

AARP Executive Vice President Nancy LeaMond said today that the group saw the House Democratic bill as the most promising proposal.

...

The AMA's support for the House bill comes ahead of a critical policymaking meeting of its House of Delegates in Houston that begins Saturday. The organization is being asked by some constituencies, at the eleventh hour, to back away from supporting healthcare reform.

"These bills go far beyond what is necessary to fix what is broken with our healthcare system, and they grant the federal government considerable new powers and authority, which could ultimately amount to a complete government takeover of healthcare, and which is anathema to doctors and patients," reads a resolution introduced by the American Assn. of Neurological Surgeons, the American Society of General Surgeons and the American Academy of Facial Plastic and Reconstructive Surgery. The resolution was also supported by AMA delegations from Georgia and Washington, D.C.

Learn why these groups and many, many others support the Affordable Health Care for America Act at our clearinghouse page.

Ezra Klein at the Washington Post passes along a new academic paper by MIT health economist Jon Gruber. Mr. Gruber has looked at the health care proposals being considered by Congress and has found that the reforms will lower insurance premiums.

One of those states is Massachusetts, which passed health-care reform similar to the one contemplated at the federal level in mid-2006. The major aspects of this reform took place in 2007, notably the introduction of large subsidies for low-income populations, a merged nongroup and small group insurance market, and a mandate on individuals to purchase health insurance. And the results have been an enormous reduction in the cost of nongroup insurance in the state: The average individual premium in the state fell from $8,537 at the end of 2006 to $5,143 in mid-2009, a 40 percent reduction, while the rest of the nation was seeing a 14 percent increase.

You can read the rest of Mr. Gruber's paper here.(MS Word document)

The New York Times ran an editorial on Saturday discussing individual mandates and affordability. It covers the key areas of:

• Why is a mandate necessary? [Those without coverage drive up costs for those with coverage]
  
• Will premiums go up or down? [They would go down]
  
• Will there be help? [Yes]
  
• What's affordable? [The House bill provides affordability tax credits for families of 4 up to $88,000]
• Has it been tried? [Yes, successfully]
  
• Which version is more affordable? [The House bill]
  

See the editorial for a complete explanation of how this would work and how it would improve access to quality, stable, affordable health care.

In another column today, E.J. Dionne correctly points out that, while the mandates and subsidies don't start until 2013, there are 14 benefits that start immediately.

That's why the most important document House Democrats released when they unveiled their bill last week was a list of 14 benefits that would be created immediately.

These include insurance reforms to ban lifetime limits on coverage and an end to "rescissions," under which insurers abruptly nullify patients' policies after they file claims. One of the most popular reforms in the bill -- barring insurers from denying coverage to those with pre-existing conditions -- wouldn't take effect until later. So the House bill creates an interim high-risk pool to help those who need coverage in the meantime.

There are also particular benefits for Medicare recipients, including an immediate reduction in drug costs, and a very popular provision that would allow parents to keep their children on the family health plan through age 26.

Especially important are new investments in community health centers and in efforts to increase the number of primary care doctors. As millions more people get access to decent care, the system will have to provide more doctors, nurses and facilities to treat them.

"People will be excited about 2013," said Rep. George Miller, chairman of the House Education and Labor Committee, which shares jurisdiction on the health-care bill. "But there are enough benefits between now and then to keep them engaged and to keep them favorably disposed."

Learn more about the Affordable Health Care for America Act [H.R. 3962] and how reform will slow the growth in out-of-control costs, introduce competition into the health care marketplace to keep coverage affordable and insurers honest, protect people’s choices of doctors and health plans, and assure all Americans access to quality, stable, affordable health care.