The White House and the health insurance industry yesterday descended into open conflict on the eve of a critical Senate vote that could determine President Barack Obama's healthcare reform plans.

Supporters of Mr Obama accused the healthcare insurance industry of “sabotage” after it issued a PwC study arguing that premiums would rise much faster under proposed reforms than they would otherwise have. The 26-page report marked an abrupt end to the unlikely alliance between Mr Obama and America's Health Insurance Plans – the main industry lobby group, which has spent about $100m in advertising in favour of the reforms.

The report estimates that premiums for the average household would rise to $17,200 (€11,633) a year by 2013 under the proposed reforms as against $15,500 without the reforms. Today's average annual premium is $12,300.