According to a report released last week by the Virginia Organizing Project and Health Care for America Now (HCAN), Senator Kennedy’s HELP bill is $919 more affordable per year than the Senate Finance Committee bill for Virginia’s families and businesses.
According to the report, Senate HELP legislation would help Virginians and all Americans save on out of pocket expenses and health insurance premiums. A typical American family of four earning $55,100 a year – roughly the national median income – would pay $3,900 less in premiums and out-of-pocket costs under the HELP bill. A typical Virginia family of four earning $70,485 a year – the state median income – would pay $919 less in premiums and out-of-pocket costs under the HELP bill.
Virginians pay the highest percentage of premium cost for individual employer-sponsored insurance in the nation. The Senate HELP bill builds on employer-based coverage, protecting the 57.6% of Virginians who get their health coverage through work. However, under the Finance bill, employers are not required to offer or help pay for coverage at all. The Senate Help bill would require businesses with more than 25 employees to with provide 60% of health insurance costs for their employees.
“This report finds that Virginia families will have good, affordable health care if the Senate enacts the HELP Committee bill instead of the Finance Committee bill,” said Zina Cary from the Virginia Organizing Project health care reform committee. “We urge our Senators to support the HELP Committee bill so that people in Virginia can get a guarantee of good coverage at work or be able to truly afford coverage if they need to buy it outside of work.”
As insurance companies pile up record profits, health insurance premiums and out-of-pocket costs continue to soar and are out of reach for many working Virginians. Matt Masterson of Virginia Beach has become bankrupted by out of pocket costs for health care. “My family’s monthly premiums through my previous work insurance started at $100 a month. Slowly the premiums increased along with the drug co-payments. Little did we know that it the drug co-payments would be the catalyst that would ultimately bankrupt our family.
“Later I was hit with a devastating diagnosis of rheumatoid arthritis. Soon after my diagnosis, United Health Care decided to change our standard $15 co-pay to a three tier system of $15-$30-$50. With all the different drugs I was on, along with my wife and my son with diabetes and asthma, we found ourselves paying out over $1,500 a month just in drug co-payments. This was over half my income,” said Masterson.
“Eventually, we lost our cars, our home, and eventually most of our belongings, held up in a storage facility because we could no longer pay the storage fees. Now, my family of five lives with my mother, sister and brother in a three bedroom house. We need real health care reform legislation with nothing less than a public option. That is the only thing that would have saved us from bankruptcy,” added Masterson.
According to the report, the Senate HELP Committee bill makes coverage much more affordable outside of work, with lower premiums and out of pocket costs and better benefits.
“The Senate Finance Committee bill falls short on making insurance affordable to America’s families, gives employers a ‘free ride,’ and does not create meaningful competition in the insurance market with a strong national public health insurance option. The HELP bill makes health insurance affordable to families through subsidies, lowers the cost of insurance with a public health insurance option, and promotes shared responsibility with an employer requirement to contribute to coverage,” said Richard Kirsch, National Campaign Manager of Health Care For America Now.
He added, “We’re closer than ever to achieving a guarantee of good, affordable health care for America’s families and businesses, and we’re counting on Senators to put their constituents ahead of the big insurers and vote for real reform.”
