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Oct 12, 2009 12:47 PM by Associated Press

Analysis: Health care reform will cost families extra $1,700 per year

The health insurance industry, which has worked with Congress on trying to reform health care in this country, released a report Sunday night saying that the bill scheduled for a vote Tuesday would cost the average American family an extra $1,700 a year to start--with the cost escalating in the future.

The office of Sen. Max Baucus, author of the bill, is dismissing the new report as an "insurance company hatchet job."

That legislation set for a vote in the senate finance committee would be melded with another panel's bill.

Late Sunday night, the health insurance industry released a study that projects a comprehensive Senate bill could add $1,700 a year to the cost of family coverage in 2013, while a single person's premium could go up $600. In 2019, the study projects family premiums could be $4,000 higher while individuals could pay $1,500 more. Click here to see the report.

A Baucus spokesman calls the study "seriously flawed" because it doesn't take into account provisions that would lower the cost of coverage, such as tax credits. Tax credits are not guaranteed to pass, and could be repealed at any time.

The White House agrees with Se. Baucus, saying "This is an insurance industry analysis that is designed to reach a conclusion which benefits the industry."

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