New research from the Commonwealth Fund illustrates the impact of cutting the Affordable Care Act, which would result in a loss of 2.6 million jobs caused by a $140 billion decrease in federal healthcare funding. Mostly in health and private sectors, the number of jobs lost would jump to nearly 3 million by 2021.

Obamacare’s Major Provisions

Souce: Flickr

The Affordable Care Act (ACA) is a measure passed under President Obama, which provides subsidies for insurance premiums and expands Medicaid eligibilities. The ACA supports low-to-moderate income families with premium tax credits on qualified health plans, which are paid to insurance companies. Why not also check out this best insurance company or forsikringsselskap best i test for more info!

The individuals assisted makeup 100 to 400 percent of national poverty. The system awards the largest tax credits to the lowest-income individuals.

The ACA also expands Medicaid to non-elderly adults who bring in incomes that fall 138 percent below the federal poverty level. Only 31 states have expanded Medicaid, with the federal government covering the majority of costs to insure eligible individuals.

While Obamacare has been referred to as a “job killer,” research illustrates that the ACA has actually stimulated job growth. Studies show that federal healthcare funding creates a revenue ripple effect that provides indirect and induced rewards, such as the ability to purchase additional medical equipment or allow individuals to support a family and contribute to the economy.

Economic Implications of Repealing Obamacare

A team of researchers collaborating with the Commonwealth Fund analyzed data to determine the effects of the repeal, predicting increased costs across the board in 2019. The research is based on the failure to supplement the repeal with a replacement plan.

Additional research support came from the Geiger Gibson RCHN Community Health Foundation Research Collaborative, and the Milken Institute School of Public Health, George Washington University.

The research shows that hospitals and physicians would see a $1.1 trillion increase in uncompensated costs between 2019 to 2028, due to millions of uninsured who are now unable to pay their medical bills. Though the cuts would lead to a loss of revenue for the industry, each state could see economic implications as well.

“When federal funds are cut, the results play out in the other direction, triggering losses in employment, economic activity, and state and local revenues,” according to the Commonwealth Fund’s research.

National Industry Distress

Researchers measured how the repeal could affect employment and economic activity on a state-by-state basis. The team used a multistate economic forecasting model “to quantify for each state the effects of the federal spending cuts.”

The majority of unemployed will be in the private sector and in health care, but other industries will be impacted too. Researchers predict serious distress caused by:

• Unemployment from jobs lost in healthcare, construction, real estate, retail, finance and insurance
• Losses in economic and business outputs
• Decrease in state and local tax revenues

$140 billion in funding cuts. 2.6 million jobs lost statewide.

In short, repealing the ACA could create serious economic and employment deficits, affecting states, the private sector and the health care system.

“Because they serve so many uninsured and Medicaid patients, safety-net facilities such as hospitals and community health centers could be especially hard hit,” according to the Commonwealth Fund. “In the end, states could be forced to choose between cutting vital services and raising tax rates.”

The provisions of the ACA largely benefit low- and middle-income individuals who require the additional funds to afford food, shelter and other basic needs. According to the research, only the wealthy will save money when Obamacare is repealed.

“Moreover, such spending creates greater economic stimulus than tax deductions that disproportionately benefit wealthier individuals, who are likely to shift more money into savings, which is less stimulative.”

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New census data shows the percentage of uninsured people in the United States has declined from 41.8 million in 2013 to 33.0 million in 2014.

The annual health insurance report was released last week, confirming the prediction that the number of uninsured people living in the United States had declined.

The report, released by the U.S. Census Bureau, generally matched other insurance-related surveys from the past year.

Accurate Predictions

The policy changes that took place in 2014, including Patient Protection and the Affordable Care Act, extended health care coverage to millions of Americans.
Image: Hive Wallpaper

The report, released on Sept. 16, was based on survey data detailing changes in income, poverty level and insurance coverage in 2014. The data was gathered from the 2015 Current Population Survey Annual Social and Economic Supplement.

There was no significant difference in household income or official poverty rates since the last survey was conducted, but researchers did confirm the amount of people without health insurance has declined. The data was separated by age, household income, race and other demographics.

The 2013 report of Health Insurance Coverage In The United States showed that 42 million people, or 13.4 percent of the population, had no health insurance. In comparison, about 271.4 million people were covered. Out of the insured group, about two-thirds were privately covered by their employers or through the individual market.

The most recent report shows that the percentage of people without health insurance coverage for the entire 2014 calendar year was 10.4 percent. The number of people without health insurance declined to 33.0 million from 41.8 million in the last year.

The percentage of people with health insurance in 2014 was 89.6 percent, higher than 86.7 percent in 2013. Employment-based insurance covered the most people, ranking at 55.4 percent, followed by Medicaid at 19.5 percent, Medicare at 16.0 percent, direct-purchase at 14.6 percent, and military health care at 4.5 percent.

The report includes data on the Affordable Care Act and how it has impacted the insurance market this year. The act has allowed 10 million people to attain coverage, in addition to the millions of Americans who received insurance through Medicaid.

“Over time, changes in the rate of health insurance coverage and the distribution of coverage types may reflect economic trends, shifts in the demographic composition of the population, and policy changes that impact access to health care. Several such policy changes occurred in 2014, when many provisions of the Patient Protection and Affordable Care Act went into effect,” according to the report.

Conflicting Data And Racial Inequalities

The report notes that racial differences in uninsured populations still exist, with Hispanic groups ranking the lowest in health insurance coverage.
Image: Barista Net

There are a number of conflicting surveys that show millions remain uninsured or underinsured, specifically non-white populations.

In June, the Centers for Disease Control and Prevention released the National Health Interview Survey. It showed that 36 million people, or 11.5 percent of the population, was uninsured in 2014. April’s Gallup-Healthways Survey showed that 11.9 percent of the population was uninsured in the beginning of 2015.

From 2013 to 2014, the overall number of insured increased for all races. The increase was comparable for blacks, Asians and Hispanics at more than 4 percent.

In 2014, 92.4 percent of non-Hispanic whites were covered. In comparison, 88.2 percent of blacks and 90.7 percent of Asians were covered. Hispanics had the lowest rate of health insurance coverage at 80.1 percent.

In addition, the state of Texas housed the highest number of uninsured individuals at 19.1 percent. This may be because undocumented immigrants are still largely uninsured. Because of their status, they are ineligible to receive premium subsidies or buy on exchanges.

“In 2014, the uninsured rate of noncitizens was over three times that of the native-born population (31.2 percent for noncitizens compared with 8.7 percent for the native-born population),” the report states.

Although fewer people are uninsured, many may still be underinsured. While most plans pay deductibles and co-payments to cover preventative tests, some consumers are forced into high-deductible plans with a lot of out-of-pocket payments.

Trading a lower monthly premium for a higher deductible seems to be a trend, but high-deductible exchange plans still affect insurance affordability.

Experts were hopeful that the most recent census would show more individuals are covered, but there is no doubt that many Americans are still in need of health care or burdened by medical debt.

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Hospitals, doctors and medical associations are attempting to prevent a big-time insurance merger that could negatively impact patients.

The American insurance market is dominated by five multibillion dollar conglomerates who have the power to set prices, reduce output and impact customer choice.

Two mergers have been proposed that would reduce the number of major insurers from five to three. The proposed mergers would allow Anthem to purchase Cigna and Aetna to buy Humana.

As these large companies attempt to swallow up their competitors, doctors and hospitals are becoming increasingly worried. Health professionals are now using various avenues to speak out against the mergers.

Protesting The Merger

If the merger is successful, the five major insurance companies would be concentrated into three powerful conglomerates.
Image: CNN

Last week, the American Hospital Association sent a letter to the Justice Department that protested the merger between Aetna and Humana. The letter informed the department that the deal would cause harm to Medicare patients by reducing their options for private Medicare Advantage plans.

Private Medicare Advantage plans, defined as “a type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Part A and Part B benefits,” provide an alternative to traditional Medicare.

Out of the 55 million Medicare patients, more than 30 percent have elected to enroll in these plans. The proposed mergers could affect 154 metropolitan areas in 23 states, according to the American Hospital Association.

Medical associations have turned to federal antitrust guidelines to argue against the merger. These guidelines assert “mergers should not be permitted to create, enhance or entrench market power.”

“A merger enhances market power if it is likely to encourage one or more firms to raise price, reduce output, diminish innovation or otherwise harm customers as a result of diminished competitive constraints.”

If Anthem is able to absorb Cigna and Aetna is permitted to purchase Humana, the market would become more concentrated. The American Medical Association also believes this would reduce the kind of competition necessary to drive fair prices and promote medication diversity.

But supporters of the merger suggest that criticism may be inspired by a self-interested fear. If insurance companies gain more power, doctors and hospitals would have less. The larger companies could potentially reduce payouts to medical professionals.

However, studies shows that the predictions from the medical associations match data from the Government Accountability Office.

The Affordable Care Act released a study that proved “enrollment was concentrated among the three largest insurers in most states.” The three largest companies insure 80 percent of patients in 37 states. The measurements were taken using the Herfindahl-Hirschman Index, a formula that discerns market concentration.

“In more than half of these states, a single insurer had more than half of the total enrollees,” the Government Accountability Office said.

The Power To Regulate Power

The Department of Justice will investigate how the effects of the merger will impact consumers and the insurance market as a whole.
Image: Tech Crunch

The Justice Department will be able to access additional data when reviewing the mergers. Both houses of Congress are calling for an investigation into the possible effects of the mergers.

The medical association has analyzed competition in insurance markets for 15 years. The president of the American Medical Association, Dr. Steven J. Stack, urges the Obama administration to carefully review the proposed mergers.

“A lack of competition in health insurer markets is not in the best interests of patients or physicians,” Stack said.

A new study from the American Medical Association that details the dangers of the mergers will be published next week.

Insurance companies believe the mergers will help them to collaboratively reduce costs and work more efficiently.  But who would benefit from the cost reduction?

Melinda R. Hatton, senior vice president of the American Hospital Association, isn’t certain that the savings would trickle down to consumers.

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