Most patient consumers set to become newly insured under the Affordable Care Act (ACA) will see a decrease in out-of-pocket expenses, a new study from the RAND Corporation found.
While overall the ACA mandate is sure to exact various health spending impacts upon each individual and family unit, primary drivers studied were income and whether those persons would have been insured in 2016 without the law, the analysts said.
Patients new to being insured who do not qualify for government subsidies will be the demographic most likely to see an increase in total spending, whereas those who were uninsured and become newly covered under Medicaid will see a significant drop in spending.
"Among the groups we studied, a clear benefit of the Affordable Care Act is that it will reduce the risk of facing catastrophic medical costs," said Christine Eibner, a study author and a senior economist at RAND, in a news release. "Consumers with the lowest incomes will see the most dramatic reductions of their risks."
Researchers looked to Florida and Texas in great detail to determine how ACA would alter out-of-pocket expenses in states that have decided not to expand Medicaid. The major findings were as follows:
All information and data courtesy of the RAND Corporation. Presentation by sister publication Medical Practice Insider.
All information and data courtesy of the RAND Corporation. Presentation by Medical Practice Insider.
All information and data courtesy of the RAND Corporation. Presentation by Medical Practice Insider.
Additionally, analysts determined: "Some low-income people in states that do not expand Medicaid could see higher health spending compared to what would happen if Medicaid was expanded. For example, a Texas resident with an income below the federal poverty level who does not qualify for Medicaid will face costs of $1,831 per year, compared to $28 if they were covered by Medicaid."
Find the full report ("Effects of the Affordable Care Act on Consumer Health Care Spending and Risk of Catastrophic Health Costs") here.