Health insurers get some big presents in the Senate’s health overhaul bill — about 20 million new customers and no competition from a new government plan.
Taking advantage of those boons might take some time, though.
The bill imposes hefty new taxes and coverage rules that will pinch insurers by forcing them to cover more sick people without gaining enough healthy, lower-cost customers, industry insiders say. The industry is also worried the bill doesn’t do enough to control health care costs.
It’s a matter of figuring out how to make those new customers profitable, analysts say.
The inconsistency — or hypocrisy, as some call it — has irked Democrats, who claim that their plan will pay for itself with higher taxes and spending cuts and cite the nonpartisan Congressional Budget Office for support.
By contrast, when Republicans controlled the House, Senate and White House in 2003, they overcame Democratic opposition to add a deficit-financed prescription drug benefit to Medicare. The program will cost a half-trillion dollars over 10 years, or more by some estimates.
With no new taxes or spending offsets accompanying the Medicare drug program, the cost has been added to the federal debt.