Key Message Points on Oliver Wyman Report
Oliver Wyman, Inc. – a highly respected actuarial firm – issued a report on October 14 that
found key insurance reform provisions included in the Senate Finance Committee bill would
dramatically increase costs for individual and small employer coverage.
Oliver Wyman concluded that a last minute Senate amendment would drive up health insurance
costs because people could wait until they are sick to purchase coverage.
The cost for individual insurance, on average, would be 50 percent higher than today:
 Health insurance premiums for new purchasers, on average, will be $1,500 higher for
individual coverage and $3,300 more for family coverage five years after reform
(excluding inflation).
 Lower income individuals would receive subsidies to cover some of these cost
increases, but millions of people would be ineligible for subsidies.
 The impact will vary significantly by state. For two-thirds of the country, costs would
increase by 60-73% compared to today.
The cost for small businesses, on average would be 19 percent higher than today:
 The number of small employers offering coverage will decline, resulting in 2.5 million
people losing small employer coverage within 5 years.
While the government will help some people pay for health insurance, millions of people will pay
their full cost.
In addition, Congress is considering changes which would result in skyrocketing
premiums for young people, causing many to forego coverage altogether.
 Oliver Wyman estimates that premiums for the youngest one-third of the population will
increase by 69 percent under the House and Senate HELP Committee bills.
Background on Oliver Wyman data: It is based on a comprehensive model that uses actual
claims data from nearly 6 million lives to study the impact of proposed reforms on the individual
and small employer health insurance markets.