ACA Summer Holiday Reading List
As Fourth of July week fast approaches and we contemplate an overabundance of hamburgers, hotdogs and ice cream, let’s take a moment and add a few items to our reading list as we lounge in the backyard hammock.
We know this is a lazy hazy time, but if you’re looking for something more challenging that may burn a few calories – check out this Kaiser Foundation interactive time line on the Affordable Care Act. (click here). While some still believe that the law has been repealed, in fact four in ten believe this to be true, our government and private health insurers have been hard at work implementing aspects of the law since 2010.
It’s hard to open the paper, or scan your Twitter feed, without seeing competing stories on the impact the ACA will have on the cost of health care. We believe costs will inevitably rise for health insurance generally despite the increase in competition. A recent Washington Post article notes “Cost-shifting to workers and efficiency measures from employers got most of the credit for slowing growth.” Bravo! The article lists several other factors that will help reduce costs by next year. However, all predictions of this nature are necessarily speculative and need to take into account the real drivers of health insurance cost, e.g. claims data and actuarial assumptions, which are always deployed retroactively.
More good news – don’t fret about government exchanges under the ACA! Private exchanges are flourishing and will be ready for the Fall. New research suggests that one in five consumers will purchase health insurance from an exchange (but most consumers remain unaware of what is coming their way.) The Accenture study finds that private exchanges will quickly outpace government exchanges and that this will “radically” transform the healthcare landscape as soon as 2017.
Enjoy your Fourth of July celebrations!