New Study: Number Of Uninsured Americans, Out-of-Pocket Spending Would Decrease Under Enhanced ACA

WASHINGTON – As some politicians discuss proposals to create unaffordable, new government-controlled health insurance systems, a new study by KNG Health Consulting reveals the number of uninsured Americans would fall significantly 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 study, which was supported by the Partnership for America’s Health Care Future, estimates the effects of select ACA enhancements, including provisions similar to those in the American Rescue Plan Act (ARPA). It finds that 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 enrollment growth because of take-up by those previously covered by ESI or uninsured, KNG Health finds.

Key findings include:

• 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 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. 
• Any increase in government spending from the ACA enhancements would predominantly go to low-income individuals and families that newly enroll in a Marketplace plan.
• Under the enhanced ACA, spending for hospital care would remain relatively unchanged, although more people would receive services. 

The KNG Health study comes as newly released data from the U.S. Department of Health and Human Services reveals that “[n]early one million Americans have signed up for Affordable Care Act coverage during the first 10 weeks of a special open enrollment period the Biden administration began in February … Of those new enrollees, nearly half bought coverage last month, after Congress added billions in subsidies included in the most recent stimulus package … The numbers undercount the overall new insurance sign-ups; they reflect enrollment only in the 36 states with marketplaces that the federal government manages,” The New York Times reports.

• To read the full study by KNG Health Consulting, CLICK HERE.

• To learn more about the Partnership for America’s Health Care Future, CLICK HERE.