This week President Obama praised the "critical milestone" in health care reform--the Senate Finance Committee's passage of the Chairman's Mark legislation. But while the passage was seen as a major step forward, the industry has also been abuzz about a controversial report released by an insurance industry group criticizing the effects of the bill.

In his remarks, the President thanked the Senate Finance Committee for the months of deliberation and bipartisan efforts. He specially thanked Senator Olympia Snowe (R-ME) for her "political courage and seriousness of purpose." Obama pointed out that more work lies ahead as the five separate health care reform bills in the Senate and House must be eventually merged into a single proposal. However, he emphasized that the latest bill makes progress in offering security to those who have insurance and affordable options for those who do not. In addition, Obama said, the bill remedies some of the "worst practices" of the insurance industry while slowing growth of health care costs and not adding to the deficit.

As reported previously, the Chairman's Mark contains provisions including allowing those who like their current coverage to keep it; to reform the market so that those who have pre-existing health conditions could not be denied coverage or charged more, eliminating limits on amount of coverage; offering web-based insurance exchanges, a personal responsibility requirement for health care coverage, tax credits to help low and middle-income families purchase insurance, and tax credits for small businesses to help offer insurance to their employees. The bill also has means to finance the reform through measures such as a High Cost Insurance Excise Tax, Pharmaceutical Manufacturers Fee, and a Medical Device Manufacturers Fee which many congresspersons have protested.

Meanwhile, an insurance industry group, America's Health Insurance Plans (AHIP) released a report commissioned from PricewaterhouseCoopers (PWC) concerning the effects of the latest legislation. The report was released shortly before the Committee vote. According to the report, the cost of the average family coverage--approximately $12,300 today--could be expected to increase to approximately $17,200 in 2013 under the bill if implemented, $21,300 in 2016 and $25,900 in 2019. The cost of the average single coverage is $4,600 today and could be expected to increase to: $6,400 in 2013, $7,900 in 2016 and $9,700 in 2019 if these provisions are implemented.

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