How to avoid high costs of health care bill
The cost of a government-mandated insurance policy for the poor will increase substantially under the health care overhaul, and the federal government will pay more in premiums than expected in the first year, according to a new analysis by a private consulting firm.
The report from the conservative American Action Forum says the average family of four will see its monthly premiums increase $10,600 under the law, or about $1,300 a month.
The increases will start to fade over the next year and the average income for an average family will be $53,000 by 2022, it says.
The cost of the policy is estimated at $3,600 a month in 2022, or $7,400 a year.
The report says that the increase in premiums would be $1.4 trillion over 10 years if fully implemented.
The Affordable Care Act requires that insurance policies cover at least three benefits: hospitalization, prescriptions, and mental health services.
But the report says the law doesn’t provide any mechanism to pay for the benefits.
That means insurers will have to raise prices to cover costs, which could make premiums unaffordable for many low-income Americans.
The costs would be passed onto consumers, especially those with lower incomes, the report said.
The bill also contains a number of provisions that the Republican-controlled Congress says would make it harder for states to implement their own policies, such as requiring insurers to provide health care coverage to people with pre-existing conditions and a ban on limiting the amount of time insurers can spend on medical bills.