Wash. Times misleads about health care reform leading to “an additional $2,100 in health care costs”

Washington Times: Health care reform “would drive up insurance premiums by around 30 percent in the individual market and up to 3 percent in the small-group market.” A September 30 Washington Times editorial misleadingly claimed that health care reform would increase the amount that individual and small-group insurance purchasers would pay in premiums. From The Washington Times:

The nonpartisan Congressional Budget Office estimated that Obamacare would drive up insurance premiums by around 30 percent in the individual market and up to 3 percent in the small-group market. For the average family, this will mean an additional $2,100 in health care costs. At a Sept. 10 press conference, President Obama admitted that “we knew that.”

In fact, with subsidies, bill would actually result in cheaper premiums

CBO: Premiums paid by most individuals would decrease. CBO estimated that premiums paid by a majority of people insured on the individual market would decrease when factoring in federal subsidies that are included in the bill. CBO stated: “The majority of nongroup enrollees (about 57 percent) would receive subsidies via the new insurance exchanges, and those subsidies, on average, would cover nearly two-thirds of the total premium, CBO and JCT [Joint Committee on Taxation] estimate. Thus, the amount that subsidized enrollees would pay for nongroup coverage would be roughly 56 percent to 59 percent lower, on average, than the nongroup premiums charged under current law.” Conservative claims that the bill would increase premiums in the individual market are based on estimates that do not factor in subsidies. CBO stated that figures identical to those cited by conservatives “indicate what enrollees would pay, on average, not accounting for the new federal subsidies.”

Washington Post's Ezra Klein: “CBO found health-care reform would reduce premiums.” The Washington Post's Ezra Klein reported in a February 25 post:

Yes, the CBO found health-care reform would reduce premiums. The issue gets confused because it also found that access to subsidies would encourage people to buy more comprehensive insurance, which would mean that the value of their insurance would be higher after reform than before it. But that's not the same as insurance becoming more expensive: The fact that I could buy a nicer car after getting a better job suggests that cars are becoming pricier. The bottom line is that if you're comparing two plans that are exactly the same, costs go down after reform.

CNN's Velshi: “57 percent of those insured will see a government subsidy, which will bring the average premium down, actually.” During CNN's coverage of the February 25 health care summit, chief business correspondent Ali Velshi stated: “The CBO, which is an independent -- independent of the political party -- says that rates will go up. But here's the reality: 57% of those insured will see a government subsidy, which will bring the average premium down, actually. It would be -- it would drive average premiums down 7 to 10 percent, but this is all based on assumptions.”

PolitiFact: “CBO reported that, for most people, premiums would stay about the same, or slightly decrease.” A January 27 PolitiFact.com analysis labeled the claim that health care reform would cause premiums for most Americans to increase “pants on fire” false and stated, “The CBO reported that, for most people, premiums would stay about the same, or slightly decrease.” From PolitiFact:

On Nov. 30, 2009, the Congressional Budget Office, or CBO, released a detailed analysis on how health insurance premiums might be affected by the Senate Democrats' health care bill. The CBO is an independent agency whose estimates for pending legislation are considered nonpartisan and rigorous.

The CBO reported that, for most people, premiums would stay about the same, or slightly decrease. This was especially true for people who get their insurance through work. (Health policy wonks call these the large group and small group markets.) People who have to go out and buy insurance on their own (the individual market) would see rates increase by 10 to 13 percent. But more than half of those people -- 57 percent, in fact -- would be eligible for subsidies to help them pay for the insurance. People who get subsidies would see their premiums drop by more than half, according to the CBO. So most people would see their premiums stay the same or potentially drop.

CBO: Premiums in group market will not increase. CBO estimated that the large group and small group markets make up 83 percent of the insurance market and that those premiums will not increase.