CBO Understates Major Impact Of Weakened Individual Mandate
October 7, 2009
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Contact: |
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Jeff Smokler (Media Inquiries Only)
202.957.7825 |
WASHINGTON – The Blue Cross and Blue Shield Association (BCBSA), issued the following statement regarding the Congressional Budget Office scoring of the amended Senate Finance Committee bill America's Healthy Future Act of 2009:
It is difficult to understand why the Congressional Budget Office (CBO) estimate did not show a greater impact from the significant weakening of the mandate in the amended bill. Amendments approved during the Senate Finance Committee mark-up eviscerated the individual mandate – completely eliminating it in 2013, significantly lowering penalties to the point that it will only represent about 15 percent of the cost of a premium by 2017. Further, many individuals would be exempt from the penalties altogether. This is likely to result in millions of people foregoing coverage.
A weak mandate, as included in the amended Senate Finance Committee bill, would encourage people to wait until they are sick to purchase coverage. This will drive up premiums for everyone.
The Blue Cross and Blue Shield Association is a national federation of 39 independent, community-based and locally operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for nearly 100 million members - one-in-three Americans. For more information on the Blue Cross and Blue Shield Association and its member companies, please visit www.BCBS.com.
