NOT ONLY MORE TAXES; HIGHER PREMIUMS, TOO REFORM PACKAGE UPGRADES INSURANCE

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 17, 1993                   TAG: 9304170286
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A8   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON                                LENGTH: Medium
NOT ONLY MORE TAXES; HIGHER PREMIUMS, TOO REFORM PACKAGE UPGRADES INSURANCE
Americans are beginning to accept the fact that health-care reform is going to mean higher taxes, but few realize that the insurance premiums they and their employers pay also could go up.
The reason: The comprehensive health benefits package being considered by President Clinton is more generous than those now offered by many employers. Industry analysts say that means it would cost more.
"I understand that they're trying to do everything for everybody, but the fundamental constituency for this is going to be the people who have to pay for it, and we're talking substantially higher health insurance premiums for some businesses and consumers," said Bob Laszewski, a former Liberty Mutual insurance company vice president who is now an independent consultant.
"The employer and the employee who pays part of the premium could get an immediate hit," agreed John Sheils, a vice president of the health benefits consulting firm Lewin-VHI.
Under Clinton's health-care reform plan, all insurers would be required to offer a government-approved benefit package, which would become the new standard for companies and individuals.
One important improvement being considered by the White House health reform task force is better coverage for mental health and drug and alcohol treatment - a benefit that private employers have been cutting back because of the expense involved.
A second element of the White House plan also could raise insurance rates for many businesses and consumers.
Clinton wants to return to the days when everybody in a given community paid about the same for insurance, a practice known as "community rating."
That would curb the exorbitant rates now charged to small businesses, companies with older employees and individuals with health problems. But it also would mean that younger, healthier people who get discounts now would pay more for their coverage.
Laszewski estimated the combination of better benefits and a return to community rating could raise premiums by 20 percent or more for some groups.
On the tax side, congressional analysts say health-care reform could cost $40 billion to $100 billion a year, depending on how quickly the 37 million uninsured are covered, and how generous the benefit package is.

by Bhavesh Jinadra by CNB