This week, the Congressional Budget Office (CBO) sent a letter to Representative Charles Rangel, the chair of the House Ways and Means Committee, presenting an analysis of the premiums individuals would pay under the House and Senate health care bills.  CBO found that the $1.2 trillion House bill would offer more for people with health problems, but the average insurance premiums and cost-sharing payments under the Senate bill would be cheaper.

Both bills would create national insurance exchanges to sell health insurance.  Plans under the House bill would likely be more expensive, as these plans would be likely to attract a slightly less healthy pool of enrollees.  The House bill offers a variety of features that would be more valuable to people with health problems, such as greater restrictions on the amount premiums can vary by age.  This would tend to make plans less attractive to younger people, who have lower health care costs, and more attractive to older people with higher costs.  Also, the plans under the House bill have higher cost sharing subsidies, which would be more valuable to people with health problems.  This would mean that plans under the House bill would tend to attract enrollees with higher health care costs, which would result in higher premiums for all enrollees.

It should be noted that this information could easily change before the final bills come up for a vote.  As we stated yesterday, a bill might not reach President Obama’s desk until some time early next year.  The latest reports from Washington show the House delaying debate until at least the end of the week, while members resolve language in the bill related to illegal immigrants and abortion funding.

Source:

Congressional Budget Office letter to Representative Charles Rangel (.pdf)

http://www.cbo.gov/ftpdocs/106xx/doc10691/hr3962SubsidiesRangelLtr.pdf

Filed under: health care reform, News by admin