New Studies on ACA: Uninsured Rate Plummets by 30%, Healthcare Cost Increases Slow

Earlier this year, I wrote about new data which suggested that the Affordable Care Act (ACA) was positively impacting the American Healthcare System. In particular, reports at the time highlighted the fact that the law was completing its primary objectives: decreasing the number of uninsured, bending the healthcare cost curve, and slowing the growth of premiums.

This week multiple reports point to the continued successful policy implementation of the ACA. A report released by the Urban Institute on December 3rd, estimated that in the first year of the ACA, the number of uninsured decreased by 10.6 million—about 30% of the entire uninsured population. The Centers for Medicare and Medicaid Services reported that in 2013 National Healthcare Expenditures only grew by 3.6%. While still an increase, this rate was below the historical growth rate of healthcare costs. In fact, the last four years have had the slowest growth in healthcare spending since the Center began measuring this information in the 1960s.

Source: CMS

The Department of Health and Human Services also released new information that suggested another goal of the ACA, making the system as a whole work better, is moving forward. Sarah Kliff of Vox.com has a good take on the HHS data that found that ACA programs contributed in reducing hospital errors; this action resulted in saving about 50,000 lives over a four-year period. Infections acquired in hospitals decreased by over 17% since 2010.

The next phase of open enrollment for the market exchanges is also off to a great start. In the two weeks since open enrollment began on November 15th, over 760,000 people have signed up for plans. This is a large turnaround from the initial launch of Healthcare.gov where just a little over 100,000 people were able to sign up during the entire first month. Open enrollment will continue until the middle of February 2015.

Source: Urban Institute

Though the first year of the Affordable Care Act has not been without flaws, we are beginning to see the healthcare system change in a profound way. Whether it’s reducing costs at large, helping improve hospitals, or decreasing the uninsured, the ACA has started to impact the system in the way that its proponents had intended.