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Report warns health plan would push millions out of private insurance
By: Susan Ferrechio
Chief Congressional Correspondent
07/08/09 3:56 PM EDT
The Congressional Budget Office Tuesday told the Senate health committee that the latest version of the panel's Democratic health care reform bill would push millions of people out of their work-sponsored health insurance plans because it would give employers a cheaper option.
Phil Ellis, a senior analyst with the CBO, said a provision known as "pay or play" might backfire, because employers would have the choice of providing health care insurance or the potentially cheaper option of paying the government about $750 per full time worker, annually.
"For smaller firms, with lower wage workers . . . they might well decide that they're better off paying the penalty and not offering coverage . . ." resulting in "a few million people who we project would otherwise have coverage from their employer not having it as a result of their proposal," Ellis said.
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