The U.S. Senate’s healthcare bill would raise insurance premiums by at least 10 percent by 2016 for those independently buying coverage, but subsidies would reduce the actual costs for half of that group, the Congressional Budget Office said on Monday.
The nonpartisan CBO said the bill would have a much smaller impact on those who receive coverage through employer-based plans. Employers with 50 or fewer workers could see premiums go up slightly, but costs could decline by as much as 2 percent per worker relative to current expectations, CBO estimated.
Premiums for larger employers could be as much as 3 percent lower in 2016, the report said.
The report was released just as the Senate was set to begin debate on the sweeping overhaul. A major reason behind the projected increase in premiums for those purchasing their plans individually is that the plans will offer greater benefits than under current policies.
At the same time, more competition among insurers who would offer their products through newly created exchanges, where people would shop for and compare policies, will help reduce premiums in the nongroup market, the CBO said.
The report also said that proposed new fees on insurers and other health sector businesses would increase premiums slightly.
