New Study: Number Of Uninsured In Connecticut, Out-of-Pocket Spending Would Decrease Under Enhanced ACA

HARTFORD, Conn. – As some Connecticut lawmakers continue to push for the creation of an unaffordable, new state government-controlled health insurance system known as the state government option, a new study by KNG Health Consulting reveals that the number of uninsured Americans would fall significantly under an enhanced Affordable Care Act (ACA) model – providing evidence to support improving the ACA as an effective means for increasing access to affordable, high-quality health coverage and care.

The study, which was supported by the Partnership for America’s Health Care Future, estimates the effects of select ACA enhancements, including provisions similar to those in the American Rescue Plan Act (ARPA). It finds that roughly 8.1 million (30 percent) and 9.6 million (34 percent) fewer people nationwide will be uninsured after the ACA enhancements in 2023 and 2032, respectively.

Key findings include:

  • Roughly 8.1 million (30 percent) and 9.6 million (34 percent) fewer people will be uninsured after the ACA enhancements in 2023 and 2032, respectively. 
  • While ESI would remain the predominant source of coverage, the Marketplace would see significant growth in enrollment, because of take-up by those previously covered by ESI or uninsured. The reductions in the ESI market are, in part, due to fixing the family glitch.  
  • With ACA enhancements, the total out-of-pocket spending decreases for each income group, apart from those in the highest income category. 
  • Under the enhanced ACA, spending for hospital care would remain relatively unchanged, although more people would receive services. 
  • Any increase in government spending from the ACA enhancements is predominantly going to low-income individuals and families that newly enroll in a Marketplace plan.

As the Hartford Courant reportsthe push to create a new state government option “comes as the federal government, through the newly enacted American Rescue Plan, is funding a massive expansion of Obamacare and the state insurance exchanges, including Access Health Connecticut. Gov. Lamont, who opposes the [state Comptroller Kevin] Lembo-endorsed plan, says he favors expanding coverage through Access Health Connecticut, which offers federally-subsidized health coverage to more than 100,000 state residents through private insurance companies.” 

The CT Mirror reports that Connecticut residents now benefit from “a special enrollment period for residents who want to take advantage of additional subsidies that will help make coverage more affordable for many. The subsidies are backed by funding included in President Joe Biden’s American Rescue Plan … Premium tax credits lower the monthly payment a consumer must make to an insurance company for coverage … The average savings per household will be $116.05 per month, or $1,392.57 per year, Access Health said. More than half of households currently in a qualified health plan will pay under $16 per month for their health insurance.”

new analysis by the Brookings Institution also highlights the significant resources now available for Americans 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 study by KNG Health Consulting, CLICK HERE.
  • To learn more about Connecticut’s Health Care Future, CLICK HERE.