Obama, GOP Argue About Healthcare Law's Impact On Premiums

CQ HealthBeat (1/29, Norman) reported that on Friday, while addressing "healthcare advocates at the annual Families USA conference," President Obama said, "This law will lower premiums. It is limiting costs. ... It is reining in the worst abuses of the insurance industry with some of the toughest consumer protections this country has ever known." CQ added, "Estimates from the Business Roundtable, a group of corporate CEOs, are that the overhaul could save large employers $2,000 to $3,000 per family a year, said Obama, statistics used earlier in the week by administration officials at congressional hearings." But, Republicans are disputing these figures, and pointing to studies which show "double-digit premium increases this year in California, Iowa, Connecticut, and Washington."

Politico (1/30, Nather) reported that neither the President nor the GOP "is on totally solid ground. It's a stretch to say, as Obama did in his speech at the Families USA conference Friday morning, that 'this law will lower premiums,'" because while the healthcare law "may make them rise more slowly...pretty much no one expects that premiums will actually go down." For their part, "Republicans are relying on some mixed evidence to claim that the law is already raising people's premiums. In fact, in one of the examples they used to counter Obama's claim, the insurer that's trying to hike its premiums -- Blue Shield of California -- has actually said it's not because of the law."

CQ HealthBeat (1/28, Norman) said that prior to President Obama's speech, HHS "officials released a new report that says families will save on premiums as well as out-of-pocket costs." This "issue is key as congressional debate over whether to repeal the law continues and as lawsuits filed against it move through federal courts. Without some kind of slowing in healthcare costs for both individuals and businesses, it will be difficult for proponents to continue to argue that the law is necessary or that it's the right approach." Notably, "Karen Ignagni, president and CEO of American's Health Insurance Plans, said the document overstated cost savings and ignored other provisions that will increase premiums such as changes in age rating that will impact younger workers."