Senate healthcare bill: It may not be perfect, but ...

I guess I’m going to have to give in to the prevailing thought on the current healthcare reform bills - that they are going to be a damn sight better than what we don’t have now.

For all the naysayers: When even the freakin WSJ says it’s do-able, you’ve gotta let it go.

This came from Reid’s office today:

Washington, DC – Nevada Senator Harry Reid released the following statement today about the recent CBO analysis regarding how the Patient Protection and Affordable Care Act would affect the rising cost of premiums:

“One of the reasons that the Senate has made health insurance reform a top priority is because of skyrocketing health insurance premiums that are breaking the backs of American families.  The most recent analysis that we received from the CBO today strengthens our belief that the Senate reform proposal will bring security and stability to American families and will stem the tide of rising premiums.”

“Most Americans will see lower premiums as a direct result of reform.  In addition, small businesses would see a reduction in premiums for their employees because of the tax credits included in the Senate proposal.  Today’s analysis confirms that millions of Americans who lack the necessary coverage to avoid potential financial ruin would have access to more coverage at an affordable price because of our proposal.

“Today, we also received analysis from an MIT economist who has reviewed our bill and concluded that it will help Americans pay less and get more health insurance coverage.  His findings show that while the cost of private insurance continues to rise, the new health-insurance Exchanges in the Senate proposal will save hundreds – and in some cases, thousands – of dollars annually.

“Our caucus remains energized by the strong momentum for reform.  I look forward to continuing to strengthen our proposal through a spirited floor debate as we work to deliver reform to the American people.”

PATIENT PROTECTION AND AFFORDABLE CARE ACT SAVES AMERICANS MONEY

The reviews are in – the Patient Protection and Affordable Care Act significantly reduces the costs of health care for Americans, bends the cost curve and reduces the deficit. The CBO projects that PPAC will reduce the federal deficit by $130 billion in the first ten years and reduce premiums for American families. And an MIT study agrees – with PPAC, American families will see lower costs of care.

PATIENT PROTECTION AND AFFORDABLE CARE ACT CURBS HEALTH CARE COSTS, MAKES AMERICAN FAMILIES A PRIORITY

With Health Reform Legislation, “Savings are Large for Both Singles and Families,” Saves Families Between $500 - $7,500. MIT economist Jonathan Gruber issued a report evaluating what would happen to premium costs with health reform. “I find that the savings are large for both singles and families, and that they are particularly large for the lowest income families that qualify for premium credits under the Senate Bill but would be left to face the full high non- group premium without legislation.  In particular, I find that the single individual would save over $2500 at low incomes (175% of poverty), and would save $200 even at higher incomes (425% of poverty or higher).  For families, the savings are much larger, ranging from nearly $7500 for low income families (at 175% of poverty) to $500 for higher incomes (425% of poverty or higher).” [“The Senate Bill Lowers Non-Group Premiums: Updated for New CBO Estimates,” Jonathan Gruber, 11/27/09]

Majority of American Families Buying Insurance in the Exchange Will See a Reduction in Premiums. The CBO evaluated what would happen to premiums for Americans under the Patient Protection and Affordable Care Act and found that a majority of Americans purchasing their insurance on the Exchanges will see their premiums decrease by 56-59 percent. [CBO, 11/30/09]

Wall Street Journal: PPAC Eases “the Financial Burden on Workers”; Cuts Deficit By $130 Billion in First 10 Years. The Wall Street Journal reported that, “(I)n a boost for the bill’s prospects, the CBO estimated the Senate measure would reduce the federal budget deficit by $130 billion over the next decade, and additional amounts over the second 10 years of the program….To help ease the financial burden on workers, Mr. Reid lowered the maximum amount the bill would require them to spend on premiums, capping premiums at 9.8% of income, down from 12%.” [Wall Street Journal, 11/19/09]

Senate Bill a “Coup,” Comes in Far Below Obama’s Price Tag. Describing the Patient Protection and Affordable Care Act as a “coup” Roll Call reported “(T)he price tag is also less than the $900 billion President Barack Obama had called for and the $1.2 trillion cost of the House-passed version… ‘He was applauded. His staff was applauded,’ said Senate Budget Chairman Kent Conrad (D-N.D.), a deficit hawk who said Reid did ‘an exceptionally good job.’” [Roll Call, 11/18/09]

PPAC Will Reduce Deficit by $650 Billion in the Second Decade. “The Senate legislation would reduce the deficit by $650 billion in the second decade, according to preliminary estimates from the nonpartisan CBO cited by lawmakers.” [Bloomberg, 11/19/09]

Reform Includes Needed Medicare Reforms to Drive Down Costs. In a letter to the President, 23 of the nation’s most well-respected health economists – a group that included both Democrats and Republicans, former Bush Administration officials and Nobel laureates – identified reforms that would make health care fiscally responsible. “In their letter, the economists identified as their final pillar of fiscally-responsible change a series of ‘delivery system reforms’ intended to nudge the system away from today’s fee-for-service model and toward a framework that more closely links compensation to results. Reid’s bill is crowded with Medicare reforms meant to do just that, from penalizing hospitals that readmit too many patients too quickly; to cutting reimbursement rates for inefficient and ineffective physicians; to creating financial incentives for teams of providers to better manage patients’ overall health. And it funds an innovation center in the Health and Human Services Department to incubate further reforms.” [Letter to President Obama, 11/17/09; Washington Post Op-Ed, 11/19/09; Political Connections, National Journal, 11/25/09]

Center on Budget and Policy Priorities: Senate Health Insurance Reform Bill Will Reduce the Deficit, Slow Growth of Health Care Costs.  “The health reform bill that Senate leaders unveiled yesterday meets two rigorous fiscal tests: it reduces deficits over the next decade and beyond, and it puts long-term downward pressure on health care costs. The bill would reduce deficits by an estimated $130 billion over the 2010-2019 period and by about one-quarter of one percent of GDP in the decade thereafter, according to the Congressional Budget Office (CBO). This amounts to about $55 billion in 2020 and several hundred billion dollars over the 2020-2029 period. The bill also would likely slow the growth of health care costs over time by, for instance, imposing an excise tax on high-cost health insurance plans, reducing overpayments that private insurers receive through Medicare Advantage, and reducing the cost of prescription drugs in Medicaid.” [“Senate Health Reform Bill Is Fiscally Responsible,” Center on Budget and Policy Priorities, 11/19/09]

Washington Post: “The Curve, as They Say, is Bent.” In the Washington Post, Ezra Klein wrote, “One actual surprise is that the Senate bill doesn’t just pay for itself. It balances itself out….The savings from Medicare and Medicaid, paired with the excise tax (which CBO says ‘is effectively a reduction in the existing tax expenditure for health insurance premiums’) and a handful of other changes, leaves the government spending no more on health care than it otherwise planned to. That’s impressive stuff given that some 94 percent of the country has health insurance. And it implies, of course, that in the third decade, the federal commitment actually goes down relative to expectations. The curve, as they say, is bent.” [Ezra Klein, Washington Post, 11/19/09]