Study: Kerry Might Cut Health Revenue By $78 Billion

The Kerry reforms call for expansion of government health coverage programs and a new catastrophic health reinsurance program. The Kerry proposals could insure about 25 million additional people, at a total net cost of about $125 billion per year to the state and federal governments. Because many of the people that the Kerry reforms would insure would have serious health problems, his reforms would cost the state and federal government programs about $3,600 per newly insured American per year, according to the Lewin estimates.

Lewin researchers also predict the program would cost private insurers a total of $774 billion over 10 years, or about $78 billion per year. Health insurers now collect about $600 billion in premium premium revenue per year.

Supporters of the Kerry proposal note that, although the program would cut private health insurance company revenue, it should reduce health insurance company claims costs by protecting them from some of the cost of insuring members who generate high claims costs.