November 30,2009

Baucus Comment on CBO Premiums Letter

MEMORANDUM

November 30, 2009

To: Reporters and editors

From:Scott Mulhauser and Erin Shields

for Senate Finance Committee Chairman Max Baucus (D-Mont.)

Re: Baucus comment on CBO premiums letter

Senate Finance Committee Chairman Max Baucus (D-Mont.) today hailed a new analysis by the non-partisan Congressional Budget Office, which illustrates that health reform legislation being considered in the Senate, the Patient Protection and Affordable Care Act, will largely lower health insurance premiums for Americans working for small businesses, large companies, and the self-employed.  From Chairman Baucus:

“In recent years, Americans have seen their health insurance premiums creep higher and higher at an alarming rate.  Health reform set out to slow those rapid increases, and today the non-partisan congressional budget scorekeepers told us we’ve succeeded,” Baucus said.  “The analysis we received today indicates that whether you work for a small business, a large company or you work for yourself, the vast majority of Americans will see lower premiums than they would if we don’t pass health reform.  Employees of large businesses could see up to a three percent reduction in health insurance premiums compared to what they would pay if we don’t act.  Tax credits for small businesses would reduce premiums up to 11 percent for employees of those companies and tax credits for individuals would cut premiums by up to 59 percent for people buying coverage in the individual market.  We also learned that the millions of Americans who are underinsured – who don’t have enough coverage to prevent them from financial ruin – would be able to purchase significantly more coverage for an affordable price.  This conclusion, combined with other findings in the report, clearly demonstrates that the Senate health reform bill will move our health system toward a consumer-oriented insurance market where affordable coverage is within reach for millions of Americans, no matter what company they work for, and that’s the right direction.”

The CBO report is available online at www.cbo.gov. 

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