Two health insurance industry trade groups voiced concern with the U.S. Senate’s passage of a $871 billion health care reform bill Dec. 24.

In a 60-39, party-line vote, the Senate approved requiring individuals to obtain health insurance coverage or face a penalty, but no government-run insurance option. The Senate bill also prohibits insurers from capping coverage or refusing coverage for pre-existing conditions. The Senate bill must now be reconciled with the House of Representatives’ version, which includes a so-called public option.

Karen Ignagni

While the nation’s health plans support legislation to provide all American’s with access to health care, said Karen Ignagni, president and CEO of America’s Health Insurance Plans, in a statement, “Specific provisions in this legislation will increase, rather than decrease, health care costs; reduce coverage options; and disrupt existing coverage for families, seniors and small businesses – particularly between now and when the legislation is fully implemented in 2014.”

Ignagni called for those issues to be addressed “if health care reform is going to fulfill the promise of providing all Americans with guaranteed access to affordable, portable health care coverage.”

Three days prior to the bill’s passage, the National Association of Health Underwriters said it had “grave concerns” about the Senate bill.

“The Patient Protection and Affordable Care Act of 2009 contains many provisions that will drive up private health insurance costs significantly for millions of Americans families and businesses and disrupt the quality coverage on which millions of Americans rely,” said

Janet Trautwein, CEO of NAHU, an organization representing about 10,000 health insurance agents and brokers.

In a statement, Trautwein pointed to the minimum loss ratio as a feature of the bill that “significantly and negatively impact coverage choice and affordability.”

She called the individual mandate “unworkable,” adding, “If the individual mandate is not effective or enforceable, people could wait to buy coverage until they get sick, causing premiums to skyrocket significantly for everyone.”

The Independent Insurance Agents & Brokers of America said it still “strongly opposes” the current reform bill, although applauded senators for “making a number of significant improvements to the bill including the removal of a government-run health insurance plan,” said Robert Rusbuldt, Big I president and CEO, in a statement.

“It is critical to note that the health care bill the Senate passed today fails to bend the cost curve for health insurance consumers, including millions of small businesspeople,” said Rusbuldt, whose organization represents a number of a small agency owners. The Congressional Budget Office predicted that small business will see a 10% to 13% increase in monthly premiums if the bill becomes law, he said.

“Health care reform must first and foremost address the rising costs of health insurance,” says Charles Symington, Big I senior vice president of government affairs. “For many small businesses, it comes down to laying off a few employees or purchasing health insurance for their workforce. This bill does nothing to shoulder the financial burden on America’s small businesses.”