In unwelcoming news it has been revealed that health insurance premiums could go up.

If a new system is put into place by the government, then cover will increase and benefits will go down, because of an insurer fee. Such a system could be imposed by next year.

An additional tax on top of the premiums would also be launched, which could take effect in 2013.

A report stated: “The annual insurer fee would lead to increased premiums, and in order to avoid the excise tax, plans would be forced to reduce benefits.”

Walton Francis, a health economist, said a rise was certain but it could be a positive: “The insurer fee would definitely increase costs and premiums though not by much. I am aware of no substantive justification for such a fee. It is a revenue raiser, pure and simple.”

He said the excise tax, would have a “very substantial economic effects over time . . . both positive and negative,” but “the net negative impact on federal employees and retirees will be relatively small.”