New Analysis: Enhanced ACA Could Lead To Lower Premiums & Coverage Gains For Connecticut Residents, Protect Choice & Competition

HARTFORD, Conn. – As some politicians continue to push for the creation of an unaffordable, new government-controlled health insurance systems, a new analysis by FTI Consulting reveals that proposed Affordable Care Act (ACA) enhancements could reduce net premiums nationwide by 24 percent on average and lead to substantial coverage gains, while preserving competition in the market and protecting choice for Connecticut consumers.

In contrast, the analysis finds that creating the national public option – an unaffordable new government-controlled health insurance system – could threaten the nation’s private coverage market, reducing choice for Connecticut consumers while creating financial challenges for health care providers in the state, who could suddenly face an influx of patients on government plans with lower reimbursement rates.

Key findings of FTI Consulting’s analysis, which was supported by the Partnership for America’s Health Care Future, include:

  • Proposed ACA enhancements could reduce net premiums nationwide by 24 percent on average, saving consumers nationwide approximately $10.6 billion annually. 
  • Proposed enhancements to the ACA could achieve significant coverage gains nationwide – upwards of five million newly insured individuals on the federal exchange alone – without the creation of the public option or significant disruption to those with private coverage or the health care system writ large.  
  • In contrast, creating the public option could threaten private coverage nationally, driving 60 million people – or 40 percent of the market – out of employer-sponsored insurance (ESI) and potentiallyeliminating the private exchange market entirely.
  • Implementing ACA enhancements and expanding Medicaid in the 12 non-expansion states – which do not include Connecticut – could result in comparable coverage gains among vulnerable populationscompared to the public option – and do so without threatening private coverage.
  • Relative to specialized Medicaid managed care plans that prioritize care coordination and address social determinants of health, the public option may not provide the coverage necessary to meet the unique health care needs of at-risk, low-income populations. 

FTI Consulting’s analysis comes as Connecticut residents now benefit from “additional subsidies that will help make coverage more affordable for many. The subsidies are backed by funding included in the American Rescue Plan [ARPA]… The average savings per household will be $116.05 per month, or $1,392.57 per year … More than half of households currently in a qualified health plan will pay under $16 per month for their health insurance,” reportsthe CT Mirror.

A recent analysis by the Brookings Institution also highlights the significant resources now available for Connecticut residents to obtain affordable health coverage under ARPA and concludes that elected leaders in Hartford should take “caution against making lasting changes” to the state’s health care policies “until matters are clearer.”

  • To read the full analysis by FTI Consulting, CLICK HERE.
     
  • To learn more about Connecticut’s Health Care Future, CLICK HERE.
Paid for by Connecticut’s Health Care Future, a project of Partnership for America’s Health Care Future Action.