For the past few years, features and benefits from the Affordable Care Act have been methodically rolled out and implemented, changing the United States Healthcare system as we know it. Along with these changes undoubtedly came opinions and emotions ranging from extreme disgust to extreme joy regarding each and every facet of the new law.

1. EFFECTS OF OBAMACARE MBAA © 2014
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5 Big Effects of Obamacare
THE LATEST ON THE ACA

2. EFFECTS OF OBAMACARE MBAA © 2014
For the past few years, features and
benefits from the Affordable Care
Act have been methodically rolled
out and implemented, changing the
United States Healthcare system as
we know it. Along with these
changes undoubtedly came
opinions and emotions ranging from
extreme disgust to extreme joy
regarding each and every facet of
the new law.
"
One of the most notable changes came in 2010 when the Affordable Care Act began
affording young adults the opportunity to stay on their parents’ insurance until their 26th
birthday.
"
In 2011, many options to aid seniors in getting the care they need were implemented.
Then, in what many perceive to be the mother of all changes came along in 2013 when
open enrollment began, and the majority of the American public was given a deadline
to enroll in a healthcare plan.
"
At first it appeared as though the open enrollment period was a bust, many people
were up in arms about the difficulty in signing up for plans, the cost associated with the
plans and the overall unfamiliarity many felt with this new system.
"
Some consumers publicly stated that they were planning to opt for fines rather than the
unaffordable coverage they found to be among their healthcare choices.
"
Now that the proverbial dust is starting to settle, though, a clearer picture is emerging,
showing the actual, real-life effects of this big shift and the way Americans utilize and
benefit from the new healthcare laws.
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At first it appeared as though the open
enrollment period was a bust, many people
were up in arms about the difficulty in signing
up for plans, the cost associated with the plans
and the overall unfamiliarity many felt with this
new system.
“

3. EFFECTS OF OBAMACARE MBAA © 2014
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Individuals with incomes less than four times the federal poverty level qualify for
subsidies to help pay for their insurance coverage. As it stands, almost 90 percent of
those who signed up for a plan on the federal exchange qualified for assistance.
"
Nearly 70 percent of those who qualify for assistance by way of subsidies are paying
less than $100 per month. In fact, the average full-priced premium per month is $346,
and the average premium for
those qualifying for subsidies is
$82.
"
While this staggering statistic is a
good indicator that healthcare was
made more affordable for many
(made obvious by the large
number of low-income enrollees),
the cost of these subsidies is no
laughing matter.
"
The federal government will likely
spend upwards of $11 billion on
these benefits, and this includes
those who enrolled at the last minute
and will only receive assistance for a portion of the year.
"
These numbers also do not include about 33 percent of new enrollees whose
exchanges are run by their individual states. According to federal officials, data is
unavailable for those states. It is reported that if the states that run their own
exchanges have comparable numbers, subsidies could wind up costing the federal
government a whopping $16.5 billion.
"
Furthermore, the Congressional Budget Office estimates that the cost of subsidies per
year will top $95 billion by 2024. This blow, however, was cushioned with the
confidence that additional revenue and cuts in other areas of healthcare will likely
balance this number out.
As previously mentioned, millions of young adults are benefitting from the provision in
the Affordable Care Act that allows them to stay on their parents’ insurance plan until
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Effect on Subsidies
Effect on Young Adults

4. EFFECTS OF OBAMACARE MBAA © 2014
their 26th birthday. The Center for Disease Control reported an estimated drop in
uninsured young people of one-sixth its original number, which equates to 1.6 million
more young people becoming insured. This is the largest drop on record since the
Center for Disease
C o n t r o l s t a r t e d
gathering such data 17
years ago.
"
Another win for this
category is that 6.2
percent more young
adults reported being
in excellent physical
health and 4 percent
more reported being in
excellent mental health
t h a n i n p r e v i o u s
studies. The same
group also saw a
decline in yearly out-
of-pocket expenses.
"
What’s more, strong
opponents of Obamacare, including Mitt Romney and John Boehner, would like to see
Obamacare repealed, but would like to keep this part of the law in effect. So, no matter
what happens in the future with Obamacare, it has likely set a positive trend
considering the healthcare of young adults.
"
States that elected to expand Medicaid in order to provide relief to those who fall in the
“coverage gap” (individuals with incomes too low to qualify for Obamacare subsidies
and too high to qualify for Medicaid) are seeing surges in Medicaid enrollment.
"
Enrollment numbers were up by 15 percent, with six million new enrollees, in the states
that expanded Medicaid. Included are the states of Oregon, West Virginia and Nevada,
which saw enormous enrollment increases of 40 percent each.
"
While this surge was to be expected, states that did not expand Medicaid are also
seeing a rise in enrollment. With all the coverage of Medicaid, some people are just
now realizing they qualify – with or without expansion. Some officials cited this
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Effect on Medicaid Enrollment

5. EFFECTS OF OBAMACARE MBAA © 2014
“woodwork effect” as a large reason for rejecting the expansion of Medicaid in the first
place, so this is definitely an increased and unexpected cost. South Carolina is one
state that saw a large increase – 14 percent to be exact. It was reported that this was
not due to the woodwork effect but more so because officials were actually seeking out
individuals who were previously eligible but not enrolled.
Although the employer mandate has not gone into effect yet, some companies have
already reported putting a stop to hiring or even downsizing and cutting hours to stay
under the radar and avoid having to provide insurance to all full time employees when
the time comes.
"
When (and if) the employer mandate goes into effect, companies with 50 or more
workers must offer insurance to all full time employees or face a penalty. Even
proponents of the Affordable Care Act reportedly want this whole mandate to
disappear, and hope that the delays in implementation are a sign of its fate.
"
If the employer mandate is implemented, some employers who have no way around it
have already said they will opt for the penalties because they are less expensive than
providing insurance for everyone.
"
They have also said that what should be a simple act of reporting employee status and
numbers to the government is too cumbersome with the Affordable Care Act and that it
will be too costly and will drain more resources than they are willing or able to sacrifice.
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Effect on Businesses
When (and if) the employer mandate goes into
effect, companies with 50 or more workers must
offer insurance to all full time employees or face a
penalty. Even proponents of the Affordable Care Act
reportedly want this whole mandate to disappear,
and hope that the delays in implementation are a
sign of its fate.
“

6. EFFECTS OF OBAMACARE MBAA © 2014
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Contrary to many of its proponents’ predictions, insurance companies are beginning to
move toward, rather than away from, offering plans in the exchange. With a sort of
“watch-and-wait” year under their belt, insurers may be starting to see a chance to
profit, allowing them to feel more comfortable approaching the market.
Data from 10 states has been collected and shows that 27 new insurance companies
will be offering plans under the Affordable Care Act next year. There has been no word
of current insurers pulling out of the exchange, so each new provider will be adding
positively to the number of
options rather than replacing
those that are pulling out.
Previous reports gave daunting
forecasts about insurance
companies’ impending refusal
to offer plans or backing out of
the exchange, creating a lack of
competition in the exchanges.
So, the great news for the
Affordable Care Act and
consumers is that insurance
companies are beginning to file
in. Experts say insurers really
don’t have much of a choice and
would be unwise to opt out of participating when more than 8 million people in 2014
signed up.
Good news for consumers is that more insurers mean more competition, and some
companies are already proposing rate decreases. According to the numbers that are
currently available for 2015 premiums, it seems as if previous doomsday predictions
about rising premiums could have been dramatized.
"
Some insurance companies, however, have reported that they'll have larger increases
in the premiums they offer, but the numbers are not definitive as of yet.
"
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Effect on Insurers

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Overall, the effects of Obamacare are still on a proverbial seesaw, and there are still
many kinks to be ironed out. It does appear as if it is fulfilling its purpose of making
healthcare more accessible to the general population.
Is it sustainable, especially considering the high cost subsidies and volatile premium
prices? As made obvious by some of the surprise results we’ve seen thus far, only time
will tell.
"
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