A new report by Families USA finds the Affordable Care Act will provide “tangible and measurable relief to American families” from the cost of health insurance premiums, copays, deductables and health care bills.
The report finds the Affordable Care Act will provide direct financial relief to millions of insured American families that struggle to pay health insurance premiums by giving them the option to shop for a plan in new state insurance marketplaces (called “exchanges”) and to receive a robust discount on their premiums (through a refundable “premium tax credit”). The Affordable Care Act will also help people who have insurance by protecting them from high deductibles, high copayments, and unexpected gaps in their insurance coverage.
The report also finds the Affordable Care Act will help American families who are uninsured by expanding affordable insurance options. Both the new premium tax credits and an expansion of Medicaid will provide new coverage options to families who could not afford coverage before. The Medicaid program will be available to families with incomes at or below 133 percent of the federal poverty level (about $30,000 in annual income for a family of four). For people with incomes above that level and up to 400 percent of poverty (about $90,000 for a family of four), the new premium tax credits will be there to help them afford coverage. And reducing the number of uninsured will reduce the “hidden health tax” that is imposed on insured families in the form of higher premiums to pay part of the cost of care provided to the uninsured.
Finally, the report finds, the Affordable Care Act will slow the growth of underlying health care costs and thus help all Americans. The new law contains a range of common-sense provisions that will both improve quality and bring down the growth in health care costs. The Affordable Care Act authorizes programs that improve the ways that doctors and hospitals coordinate care, programs that promote preventive services and practices, and programs that will develop and disseminate better information about new drugs and treatments to both patients and doctors. In addition, the Affordable Care Act will promote transparency, accountability, and competition among health insurance companies through both the new state exchanges and new standards for reviewing how premiums are set by insurers. By promoting greater competition and accountability, the Affordable Care Act will motivate insurance companies to hold down health care costs and premium increases while improving quality of care.
The examination found that both lower- and middle-income families will be financial winners, and both uninsured and insured families will come out ahead. Read the full report.