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Democrats Finally Admit Premiums to Rise Under Government Takeover of Health Care

April 21, 2010

Today, the New York Times reports Democrats are scrambling to prevent the predicted health insurance premium increases that are coming for millions of families as a result of their big government health care overhaul.  Just one month after becoming law, Democrats, “fearing that health insurance premiums may shoot up in the next few years,” are attempting to “fix” the new law that they promised would make health care more affordable.  Unfortunately, when it comes to fixing health care, Democrats invariably rely on giving the government more authority and control. 

Americans and Congressional Republicans have repeatedly cited the rising cost of insurance as their number one concern related to health care, but after spending one trillion dollars, cutting Medicare by one-half trillion dollars and increasing taxes by over one-half trillion dollars, the Democrats’ health overhaul law fails to make coverage more affordable.  The Congressional Budget Office (CBO) has repeatedly warned that the Democrats’ plan would increase premiums, something the Democrats now realize, as reported by the New York Times.  Conversely, CBO predicted the Republican Alternative would actually lower premiums without increasing the deficit, cutting Medicare, or raising taxes. 

Impact on Individual Market Premiums in 2016
 Under Various Democrat Proposals According to CBO




Change in Premiums Compared to Current Law Projections


Senate Democrats’ Bill (H.R. 3590)*


$2,100 increase


House Democrats’ Bill (H.R. 3962)**


$1,900 increase


House Republican Bill (H.R. 4038)***


$1,050 decrease

President Obama asserted that under the Democrats’ scheme, “you’re going to be able to get lower costs.” The President and Congressional Democrats also promised under the new law seniors’ Medicare would be unharmed, middle class taxes would not go up and the law would not increase the deficit.  In the rush to score a political win, what else weren’t the Democrats being forthcoming about?

CBO Letter to Senator Bayh November 30, 2009 
CBO Letter to Chairman Rangel November 2, 2009
CBO Letter to Republican Leader Boehner  November 4, 2009