Dems and GOP go tit-for-tat on healthcare premiums

The Obama administration released a 13-page report Friday that argues the healthcare reform law will save families and businesses thousands of dollars, prompting immediate criticism from the GOP.

The report says "preliminary evidence suggests" that rate increases in 2011 will be lower than in recent years. In 2014, family policies in the exchanges could be as much as $2,300 less expensive than they would be without the law, and families could save even more thanks to tax credits and cost-sharing assistance.

"Small businesses, on average, could save up to $350 per family policy due to lower costs in the Exchanges and could get tax credits for up to 50 percent of their premiums," the report says. "Even large businesses will likely see lower premiums of $200 per family due to an increase in healthier enrollees."

The report, however, doesn't factor in the increased benefits mandated by the law, which will offer people more comprehensive coverage but at a higher cost. These would increase coverage costs by 10 percent to 13 percent, according to the Congressional Budget Office.

Medicare's chief actuary has also testified that the law would increase healthcare costs and that some people may lose their current coverage as their employer drops coverage. The Senate Republican Communications Center on Friday released a list of insurance companies in several states — California, Vermont, Iowa, Washington and Connecticut — who have recently hiked rates and in some cases blamed the new law.

"More promises of lower premiums for some people at some point in the future is little comfort to those who are already seeing higher premiums or won't be able to keep the coverage they have as the president promised," Senate Minority Leader Mitch McConnell (R-Ky.) said Friday.

The health insurance industry, meanwhile, repeated its refrain that focusing on premiums without tackling underlying healthcare costs won't make coverage more affordable.

"The document released today overstates the cost savings associated with certain provisions of the new law and ignores major provisions that will raise premiums, including the new premium tax, age rating restrictions that impact younger workers, and benefit mandates that exceed the coverage that many purchase today," Karen Ignagni, president and CEO of America's Health Insurance Plans, said in a statement. "While tax credits are important to help people pay for coverage, tax credits do not bring down the growth of medical costs or reduce health insurance premiums."