A new analysis by a leading MIT economist provides new ammunition for Democrats as the Senate begins formally debating the historic health-reform bill being pushed by President Barack Obama.
The report concludes that under the Senate’s health-reform bill, Americans buying individual coverage will pay less than they do for today’s typical individual market coverage, and would be protected from high out-of-pocket costs.
The “microsimulation” analysis is by Jonathan Gruber, an economist at the Massachusetts Institute of Technology and a Treasury Department official under President Bill Clinton. Gruber used data from the Congressional Budget Office.
Gruber concludes that people purchasing individual insurance would save an annual $200 (singles) to $500 (families) in 2009 dollars. And people with low incomes would receive premium tax credits that would reduce the price that they pay for health insurance by as much as $2,500 to $7,500.
Gruber’s conclusion: “[F]or those facing purchase in the non-group market, the … bill will deliver savings ranging from $200 for singles to $500 for families in today’s dollars – even without subsidies. The savings are much larger for lower income populations that receive premium credits.
“This is in addition to the higher quality benefits that those in the exchange will receive, with actuarial values for low income populations well above what is typical in the non-group market today. It is also in addition to all the other benefits that this legislation will deliver to those consumers – in particular the guarantee, unavailable in most states, that prices would not be raised or the policy revoked if they became ill.”
You can read the full report here.
So not only will the Democratic health care reform plan reduce the deficit, but it will also provide the American people with more health care for less money. Sounds like a good thing to me.
Of course, don’t expect this to change the GOP’s talking points one bit–they never let the facts get in the way of a good smear.