New study: Health reform to make health insurance affordable for nearly all families
Ninety percent of American families living above the federal poverty level will be able to afford health insurance under the Affordable Care Act, according to a new Commonwealth Fund report by Jonathan Gruber and Ian Perry of the Massachusetts Institute of Technology (MIT). The report finds that new subsidies available through health insurance exchanges established under the law will make premiums affordable for most families. But the authors also warn that high out-of-pocket costs will likely mean some families will still be unable to afford health-related expenses.
"The Affordable Care Act is very good news for millions of Americans who are struggling to afford health care, going without health insurance, or skipping the care they need because they can't afford it," said Commonwealth Fund President Karen Davis. "The new law makes health insurance and health care affordable for nearly all families, and introduces delivery system reforms that have the potential to greatly improve quality and efficiency. If implemented well, new entities like accountable care organizations may bring even greater savings and affordability than this report predicts."
The report, Will The Affordable Care Act Make Health Insurance Affordable? uses consumer spending data to analyze family budgets across income levels, and compares them to the costs of purchasing health insurance through the health insurance exchanges scheduled to begin in 2014, and typical out-of-pocket health care spending. The analysis finds that the vast majority of American families, even lower-income families, have room in their budgets for premiums and typical out-of-pocket costs. For example, households between 100 percent and 150 percent of the poverty level (up to $33,525 for a family of four) spend 75 percent of resources on necessitiesincluding child care, food, housing, taxes and transportationleaving most families in that income range able to afford some health-related expenses.
However, in each income range that the authors examined, some families would still struggle to afford all their health care because of high out-of-pocket costs. For example, 10.8 percent to 17.5 percent of families with incomes between 100 percent and 200 percent of poverty, and about a quarter of families earning between 200 percent and 300 percent of poverty, who have high out-of-pocket costs could not afford all their necessities plus health-related costs. Families with incomes over 500 percent of poverty, or $111,750 for a family of four, have room in their budgets for health care, even with high out-of-pocket costs.
"Our analysis is promising, as the vast majority of people will be better off because of the premium subsidies and cost-sharing limits in the Affordable Care Act," said Jonathan Gruber, professor of economics at MIT and lead report author. "However, the concerns about high out-of-pocket costs are notable and should be addressed so that people who become very sick don't face out-of-pocket costs that they are unable to afford."
More information: The full report will be available on April 27 at: www.commonwealthfu… tions/Issue- Briefs/2011/Apr/ACA-Health-Insurance-Affordable.aspx
Provided by Commonwealth Fund
- New study shows low-income families face 3 barriers to health care Nov 29, 2007 | not rated yet | 0
- New report: Employer health insurance premiums increased 41 percent from 2003 to 2009 Dec 02, 2010 | not rated yet | 0
- Lower-income families with high-deductible health plans may put off care because of costs Nov 22, 2010 | not rated yet | 0
- Families caught in the middle May 02, 2010 | not rated yet | 0
- New report: Individual health insurance market failing consumers Jul 21, 2009 | not rated yet | 0
- Motion perception revisited: High Phi effect challenges established motion perception assumptions Apr 23, 2013 | 3 / 5 (2) | 2
- Anything you can do I can do better: Neuromolecular foundations of the superiority illusion (Update) Apr 02, 2013 | 4.5 / 5 (11) | 5
- The visual system as economist: Neural resource allocation in visual adaptation Mar 30, 2013 | 5 / 5 (2) | 9
- Separate lives: Neuronal and organismal lifespans decoupled Mar 27, 2013 | 4.9 / 5 (8) | 0
- Sizing things up: The evolutionary neurobiology of scale invariance Feb 28, 2013 | 4.8 / 5 (10) | 14
Classical and Quantum Mechanics via Lie algebras
Apr 15, 2011 I'd like to open a discussion thread for version 2 of the draft of my book ''Classical and Quantum Mechanics via Lie algebras'', available online at http://lanl.arxiv.org/abs/0810.1019 , and for the...
- More from Physics Forums - Independent Research
More news stories
(HealthDay)—In 2008 to 2010, the prevalence of key health behaviors among U.S. adults varied, with about one in five adults current smokers and 62.1 percent overweight or obese, according to a report presented ...
Health 1 hour ago | not rated yet | 0
(HealthDay)—The overall health of Americans isn't improving much, with about six in 10 people either overweight or obese and large numbers engaging in unhealthy behaviors like smoking, heavy drinking or ...
Health 2 hours ago | not rated yet | 0
A federal court in San Francisco Tuesday struck down Arizona's ban on abortions after 20 weeks of pregnancy.
Health 2 hours ago | 5 / 5 (1) | 0
Children who are exposed to secondhand smoke in early childhood are more likely to grow up to physically aggressive and antisocial, regardless of whether they were exposed during pregnancy or their parents have a history ...
Health 4 hours ago | 1 / 5 (1) | 0
Most elite athletes consider doping substances "are effective" in improving performance, while recognising that they constitute cheating, can endanger health and entail the obvious risk of sanction. At the same time, the ...
Health 5 hours ago | not rated yet | 0
Activating an enzyme known to play a role in the anti-aging benefits of calorie restriction delays the loss of brain cells and preserves cognitive function in mice, according to a study published in the May ...
56 minutes ago | 5 / 5 (2) | 0 |
An experimental sleeping pill from US drug company Merck is effective at helping people fall and stay asleep, according to reviewers at the US Food and Drug Administration, which could soon approve the new drug.
7 minutes ago | not rated yet | 0
A paper recently published in the New England Journal of Medicine and co-written by physicians and scientists at the University of Colorado School of Medicine finds that an important genetic risk factor for pulmonary fibros ...
34 minutes ago | not rated yet | 0
Using the Department of Defense Serum Repository (DoDSR), University of Cincinnati (UC) researchers have identified a number of biomarkers for inflammatory bowel disease (IBD), which could help with earlier diagnosis and ...
35 minutes ago | not rated yet | 0
By studying the roles two proteins, thrombospondin-1 and prosaposin, play in discouraging cancer metastasis, a trans-Atlantic research team has identified a five-amino acid fragment of prosaposin that significantly reduces ...
37 minutes ago | not rated yet | 0
Transparent information on the evidence supporting global recommendations on paediatric medicines should be easily accessible in order to help policy makers decides on what drugs to include in their national drug lists, according ...
57 minutes ago | not rated yet | 0