PricewaterhouseCoopers Report on Costs of health care reform chart

PricewaterhouseCoopers is the world’s largest accounting firm. It’s gross sales in 2008 were about $28 million. The company employees more than 155,000 people and generates millions of dollars a year to lobby members of Congress on behalf of their clients.

According to OpenSecrets.Org, some of the industries that have hired PricewaterhouseCoopers to push their agenda in Washington, DC include energy, health care, pharmaceutical, insurance and financial sectors.

In 2005, PricewaterhouseCoopers racked in more $16 million in lobbying fees. In 2006, it was down to just under $6.7 million. And in 2007 and 2008 PwC made about $5.5 million each year lobbying.

Yesterday, representing their health industry clients the firm released a report claiming that if the Senate Finance Committee bill becomes law the cost of health care will skyrocket.

According the PwC “Report on Costs,” health insurance premiums will increase by 111 percent in 10 years if the Baucus bill is left unchanged.

At issue are four provisions, which the reports says, if enacted “could increase private health insurance premiums about the levels projected under current law.”

The provisions are:
1. Insurance market reforms and consumer protections that would raise health insurance premiums for individuals and families if the reforms are not coupled with an effective coverage requirement.
2. An excise tax on employer-sponsored high value health plans (or “Cadillac plans”) that in a few years could also raise premiums for some moderate value plans.
3. Cuts in payment rates in public programs that could increase cost shifting to private sector businesses and consumers. These changes are expected to more than offset the potential reduction in cost shifting resulting from providing coverage to the uninsured.
4. New taxes on health sector entities that are likely to be passed through to consumers.

In other words, the cost of insuring the uninsured and tax increases will be passed directly to consumers. That’s how the free market works. Without a viable public health care system that’s focused on keeping costs low, private insurers will simply push the cost of health care reform onto the backs of existing policy holders.

The PricewaterhouseCoopers report is a clear signal by the health industry that they will not sacrifice profit to reduce the cost of providing health care for everyone. Private insurance companies have no desire to cover the uninsured, because many of the people who don’t have health insurance have already been denied coverage for a pre-existing condition.

Therefore, only a public health care plan can provide adequate care to those lacking access to proper health care – the free market will not suffice because there’s no money in covering people who already have cancer, back problems or diabetes.

Read the PricewaterhouseCoopers “Report on Costs” of health care reform
OpenSecrets.Org data on PricewaterhouseCoopers lobbying income and clients
PricewaterhouseCoopers Corporate Web site