The Number of Uninsured Americans and Out-of-Pocket Costs Would Fall Under an Enhanced ACA Model

As some politicians discuss proposals to create unaffordable, new government-controlled health insurance systems, a new study by KNG Health Consulting, supported by the Partnership for America’s Health Care Future, reveals that the number of uninsured Americans and out-of-pocket costs would fall under an enhanced Affordable Care Act (ACA) model – providing evidence to support improving the ACA as an effective means for increasing access to affordable, high-quality health coverage and care.

THE FACTS:

• Roughly 8.1 million (30 percent) and 9.6 million (34 percent) fewer people will be uninsured after the ACA enhancements in 2023 and 2032, respectively.

• While employer sponsored insurance (ESI) would remain the predominant source of coverage, the Marketplace would see significant growth in enrollment, because of take-up by those previously covered by ESI or uninsured. The reductions in the ESI market are, in part, due to fixing the family glitch. 
  
• With ACA enhancements, the total out-of-pocket spending decreases for each income group, apart from those in the highest income category.

• Under the enhanced ACA, spending for hospital care would remain relatively unchanged, although more people would receive services.

• Any increase in government spending from the ACA enhancements is predominantly going to low-income individuals and families that newly enroll in a Marketplace plan.

THE TRUTH:

This study adds to a growing body of evidence in support of building on and improving what’s working in health care. Enhancing the Affordable Care Act (ACA) would not come with the same costs and consequences as creating one-size-fits-all government health insurance systems, such as Medicare for All, the public option, or lowering the Medicare enrollment age. And with American families relying on our health care system now more than ever, lawmakers should build on what’s working in the ACA to ensure every American can access the affordable, high-quality health coverage and care they deserve.