Millions Would Lose Private Insurance Under Health Reform Bill, Study Shows

WASHINGTON, JULY 21, 2009-- More than 88 million Americans could lose their private, employer-based coverage, according a new analysis of The American Affordable Health Choices Act of 2009 released this week by The Heritage Foundation.

Heritage commissioned The Lewin Group, a highly respected health care policy and management consulting firm, to examine the impact the House health reform bill would have on private insurance when a government-run health plan is introduced in the marketplace.

The study found that 88.1 million Americans could be transitioned out of their current plan as employers opt out of continuing their existing coverage. These Americans would lose the employer coverage they now have. The study also found that nationwide 103.9 million Americans would end up on the new government-run public plan.

"This flies in the face of the current promises that if you like your health insurance coverage, you will keep it," said Heritage Vice President Stuart Butler. "If the public plan is implemented as detailed in this House bill, people with private insurance will be moved on a public plan, regardless of what they want, because their employers will make that decision because of the financial incentives in the bill."

Another key point from the Lewin study:

• Yearly premiums for Americans with private coverage could jump as much as $460 per person as a result of more cost-shifting, which would stem from the public plan.

You can read the entire study and find more health reform information at Heritage's new Web site www.fixhealthcarepolicy.com.