Early Reports: ACA having a Positive Impact on U.S. Healthcare System

In recent weeks there has been a slew of good news about the Affordable Care Act (ACA). These early reports indicate that the ACA is achieving some of its main objectives of reducing the number of uninsured Americans and bending the cost curve. Consider these facts:

The number of uninsured Americans has dropped dramatically.

  • The rate dropped dramatically in states like Arkansas and Kentucky, where the uninsured population fell by 10.1 and 8.5 percentage points respectively.
  • Studies show that the ACA’s first year has led to about 9.5 million less uninsured Americans.


Premiums rate increases are below historical averages

Map, credit to Vox.com

  • According to Vox, the average premium increase would be 8.2%, less than the healthcare market typically grew in the years prior to the passage of healthcare reform. 


The ACA is contributing to a lower federal budget deficit and helping to reign in healthcare costs

Chart, credit to HuffingtonPost 


  • Healthcare spending as a percentage of GDP has decreased for two consecutive years. This is the first time that this has happened in 15 years.
  • The New York Times highlighted a report that the expected cost of Medicare continues to drop drastically from previous projects. Between a report released in 2006 and the most recent estimate, there is a $95 billion difference in how much Medicare is expected to cost the government. The Times notes that the ACA has played a role by helping to bend the cost curve.
  •  National Health Expenditures is projected to increase over the next decade according to a report by the Center for Medicare & Medicaid Services.  NHE will only grow by an average rate of 5.8% from 2012 - 2022, which is lower than the historical average.