BCBSA Report on Individual Premiums

Harry Reid's staff has strongly criticized the report commissioned by the Blue Cross and Blue Shield Association on the impact of health care reform on individual premiums. The report states that premiums will increase sharply due to the impact of adverse selection anticipated because proposed penalties for not obtaining coverage are so weak. As a result, people will not seek coverage until they absolutely need to. Healthy, young people in particular will stay out of the insurance market denying the pool a much needed source of revenue. Reid's staff says the report is just "fear-mongering" by the health insurance industry which wants to impede change. But I believe the report gets it right and unless the penalties for not obtaining coverage are increased, individual premiums will increase just providing more reasons not to seek coverage.