The insurance industry lobby is panning the Senate legislation.The lobbying group, America’s Health Insurance Plans, said in a statement on Thursday that the bill would increase costs for individuals, families and employers; reduce benefits for older Americans; and threaten employer coverage.
The Senate Bill
The majority leader, Harry Reid, Democrat of Nevada, unveiled the Senate’s blended health care bill on Wednesday, Nov. 18. Previous posts:
And by the way, the lobbying group added in an aside, the insurance industry is not making as much profit as you might think. “According to Fortune magazine’s analysis of the companies listed under ‘Insurance and Managed Care,’ earnings in 2008 totaled $8.61 billion with a profit margin of 2.2% — ranking the industry 35th on the Fortune list,” the statement said.
In the statement, Karen Ignagni, the group’s president and chief executive, said the association would work with the Senate to improve the bill. But she spelled out some of the industry’s complaints:
“This proposal encourages people to wait until they are sick to purchase coverage, which will significantly drive up costs for those who are currently insured. The legislation also imposes rating rules that will raise the cost of coverage for millions of young families in more than 40 states.
“The new health care taxes and fees will raise the cost of coverage for individuals, families and employers. Health plans will be required to pay a $6.7 billion tax beginning next year for the next 10 years, in addition to ‘stabilization’ fees of $25 billion in 2014, 2015, and 2016.”
Ms. Ignagni said health care providers would be forced to offset reductions in public program reimbursements “by charging more to families and employers who have private coverage.”
“The $117 billion in cuts to Medicare Advantage,” she said, “will threaten the choices that seniors have across the country and significantly reduce seniors’ benefits in many major metropolitan areas.”
As the Senate becomes the main battleground in the health care fight, check this space for the latest updates from Washington and beyond. 
