By Cliff Montgomery – Oct. 23rd, 2009
Middle-class Americans will still struggle with huge health insurance costs if the Senate Finance Committeelegislation known as the Baucus Bill becomes law.
The bill, put together by the finance panel chaired by Senator Max Baucus (D-MT), would force all Americansto buy insurance–either by by purchasing it themselves or through an employer. The Baucus Bill currently is theonly health care legislation on Capitol Hill to reject government-run insurance via a public option.
Tax credits in the Baucus plan are meant as an aid to individuals and families forced to buy insurancecoverage. The problem? For many, these credits won’t be nearly enough to defray costs.
In fact, a number of solidly middle-class families buying coverage through proposed insurance exchanges maystill find it too expensive.
“For some people it’s going to be a heavy lift,” admitted Sen. Tom Carper (D-DE) to the Associated Press (AP)on Oct. 3rd.
“We’re doing our best to make sure it’s not an impossible lift,” he added rather weakly.
Sen. Olympia Snowe (R-ME) sounded just as unsure.”We have no certainty as to whether or not these plans are going to be affordable,” she told AP.
Carper and Snowe are on the Finance Committee.
An online tool created by the Kaiser Family Foundation deftly points out just how much of a ‘heavy lift’ theBaucus Plan would be for average Americans.
The Health Reform Subsidy Calculator provides basic estimates of just how much money each congressionalproposal may cost households of different ages and incomes. Of course, the calculator merely is a roughguide. But its results speak volumes.
The five health care reform bills now being seriously considered by Congress were created by:
- The House Ways and Means Committee
- The House Education and Labor Committee
- The House Energy and Commerce Committee
- The Senate HELP Committee
- And the Senate Finance Committee, currently chaired by Baucus.
The American Spark used the Kaiser calculator to discover how a 45 year-old person might manage if he orshe makes $40,000 a year, lives in a medium-cost area, and is the policyholder for a family of four but does nothave insurance provided by an employer.
Our findings? The Baucus Bill clearly would provide the greatest financial burden on the family.
The House Ways and Means Committee and the House Education and Labor Committee would call for afamily premium payment of $1,702–or 4.3 % of the family’s annual income. This would cover about 15 % of thetotal insurance premium–the rest would be paid through government subsidies.
The House Energy and Commerce Committee would call for a family premium payment of about $1,829–or4.6% of the family’s annual income. This would cover 16% of the total insurance premium–the rest would bepaid through government subsidies.
The Senate HELP Committee would call for a family premium payment of $978–or 2.4% of the family’s annualincome. This would cover 6% of the total insurance premium–the rest would be paid through governmentsubsidies.
And the Baucus Bill? It would call for a family premium payment of $2,428–or 6.1% of the family’s annualincome. This would cover 22% of the total insurance premium–the rest would be paid through governmentsubsidies, via tax credits.
It should be pointed out that Kaiser’s health reform calculator doesn’t consider deductibles and co-payments,which could add several thousand dollars to a family’s final medical expenses.
The matter of affordability “has been lurking in the background and is nowhere near resolved yet,” statedKaiser President Drew Altman.
Therefore average Americans may need to discuss whether they could ever afford the Baucus Bill.
