Affordability, Access and Quality Proof ACA Is Working
- Last month, U.S. Department of Health and Human Services (HHS) secretary Sylvia Burwell penned a blog post that argues the Affordable Care Act is working and the evidence is clear. To see it though, individuals may need to change the lens through which they look.
According to Burwell, the HHS uses three measures when determining the success of the ACA. They are affordability, access and quality of care. Using this criteria, it is easy to see that the ACA has been successful. Proper health insurance coverage is something that the country has been debating for many years and the effects were felt by tens of millions of uninsured Americans and millions more whose plan does not offer the right coverage. Now the strength of the health care industry and the middle class is growing.
“Four years after President Obama signed the law, middle-class families have more security, and many of those who already had insurance now have better coverage,” Burwell said. “Fewer Americans are uninsured. At the same time, we’re spending our health care dollars more wisely, and we’re starting to receive higher quality care.”
She went on to discuss some of the specific statistics that the HHS is using to justify their stance. For example, in the first year of activity, the number of uninsured adults has been reduced by 26 percent. To put that into context, there are currently 10.3 million more adults covered by health insurance than in 2013.
Those that were already insured are seeing benefits as well. Since 2010 more than 8.2 million seniors have saved more than $11.5 billion.
There are also several laws and programs born out of the ACA that are making a difference. Last month, we covered the rate review program which, in 2013 alone, helped consumers save $1 billion from lower than originally requested health insurance rates. This includes $290 million for individuals and families and $703 million for small employers.
The savings come from a reduction in annual premiums. In the past, a double digit increase was not uncommon and insurance companies did not need to disclose the reasons for the hike to regulators, the public or consumers. The new law requires every state to publicly address any rate increase of 10 percentage points or more.
Burwell also looked into the future to see what could be coming down the pipeline. She mentioned that in 2015 there will be a 25 percent increase in the number of issuers selling health insurance plans. More competition means a better selection for consumers that will be able to find the best affordability, access and quality.
Hospitals will experience savings as well. Because of the Affordable Care Act, hospitals will save $5.7 billion in uncompensated care costs by the end of 2014. States that have expanded Medicaid are projected to save $4.2 billion and receive an estimated 72 percent of total savings nationally.
“There is evidence that we have bent the cost curve when it comes to health care,” Burwell wrote. “Across the board, we have now held down health care price inflation to the lowest rate in 50 years.”
