Insurance industry warns of higher rates

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So why does it mean now America you know we're talking about here the health care ruling in the insurance industry responding to the supreme court's ruling on the health care law now warning -- double raise health care costs.

For many Americans supporters of the law saying it's designed to bring -- premiums down.

So what's right joining us now Robert circle bond as a spokesman for America's Health Insurance Plans.

And Ron Pollack is executive director of families USA that's a non profit health care group and gentlemen to both did you welcome here.

As we thank them patronizing us -- welcome Robert what do you think it does.

On the insurance front.

Well now that we have some certainty from the Supreme Court ruling.

We need to focus on affordability.

There are a number of significant provisions in Health Care Reform law the -- the cost of health care coverage.

For example -- a seventy billion dollar tax on health insurance goes into a fact.

Into the 2014 all these other reforms.

Are going into effect.

That's gonna add to the cost of healthcare conference who -- for millions of people are going to be required to buy more health care coverage than they have today.

That's also gonna add to the cost of covers -- -- -- -- very thankful for that specific provision.

-- -- -- -- companies that event buck up is that the individual where's that money -- for a what will ultimately.

Any -- yet tax on health insurance is the people who purchase health insurance they end up paying so individuals.

Families small businesses and the way this tax -- is structured.

For beneficiaries and Medicaid beneficiaries in Medicare to a private coverage they're also gonna see higher costs result of this tax -- -- -- it -- -- you are eat your pretty much slowing it down that everybody's gonna get higher prices here Ron what about that is that true.

I think that that families are going to be a whole lot better off in the going to be better off in a number of ways.

First of all families.

That have incomes below 400%.

-- that's family of four.

With less than 92000.

Dollars in income.

Family of three for -- less than 75000.

Dollars in income.

They -- going to get subsidies.

To make premiums more affordable so that's going to mean they're going to have less out of pocket costs.

To pay for premiums what about everybody else and that's larger point that Roberts making.

Well.

First of all that the folks who have the greatest difficulty paying forward or our middle class folks who will be helped but then for others.

One of the significant components of costs is that all of us who are insured.

Ultimately wind up paying for the cost of the uninsured when they get care if they can't pay -- And on average.

The added cost that we pay in -- premiums to pay for the uncompensated health costs of the uninsured.

Is over a thousand dollars a year for family coverage -- what we get more people covered that means that those additional costs will come down.

This is what the CBO's says as of 2014.

With the health care law insurance premiums rise -- additional four point 1%.

Individuals and businesses pay approximately 37 point four billion dollars more.

And health insurance premiums that's what congress is saying about how -- gauges this bill.

Now Robert if the expense goes higher.

Consumers are left to make a choice.

And if they can't afford it or don't want to pay the bill they're going to be looking for other options.

And does I don't logic served at the next option for them as the government exchange.

Which is the programs that will be established in all the states and ultimately.

What what was that being here.

I had this couple key point you should make first off.

All the point about subsidies the Congressional Budget Office says that 40% of people.

Are not eligible for subsidies and -- phase out very quickly for people at the higher end of those who are.

We're receiving subsidies so for most people they're paying the full.

Cost of.

The insurance and all of the new benefits all the new taxes that are required.

And one thing that's important to remind us not everybody is going to be impacted the same for people who have coverage -- large employers are very comprehensive benefit packages today.

They're not gonna see.

The same impact that someone who's purchasing coverage on their -- who perhaps -- purchased a less comprehensive benefit package in exchange for a lower.

Multi premium they're gonna have to buy out of a much broader Packers they have today and their costs are gonna collapse that we need done not only look like what's the average impact.

But what's going to be what's -- gonna mean for a specific individuals for families for smoke.

Actually you're right what you're trying to determine is the net effect on on on on those people in this country.

-- I don't know if Ron Roberts making the point that were all gonna pay more.

Well I don't I don't believe that's true it all.

First of all small businesses a lot of -- people get coverage mainly through businesses.

And it's small businesses that have the greatest difficulty affording coverage.

And -- -- going to get and they're ready getting tax credits subsidies up to 35%.

Of their cost.

And a 2014 it'll go up to 15% of costs and that means.

There's less pressure on the small businesses to foist these costs off on their workers.

So -- that's very important on the other thing is Robert was talking about possibly premiums going up because of a richer benefit package.

But the most significant thing about getting a better benefit package is that people paid less in deductibles and co payments.

And so when you have you're you're brilliant you're not focusing on the overall cost.

And wherever I just want to drill down as well how much time left here but.

The point is is that for many Americans.

You're not denying the fact that they're gonna have to pay more money right.

You -- Americans are paying more money with each passing year the affordable care health act -- legislation.

Is going to allow people to get help so that they are out of pocket burden will be reduced from what it otherwise would be in the absence of this law.

Okay Ron Pollack and Robert circle back thank you gentlemen both it's the first time we've heard from the insurance that history.

And there's a lot more to go over on this thanks for crack in the services -- twice.

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Insurance industry warns of higher rates

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