A C A 2 Z

ACA A to Z Everything you need to know about the Affordable Care Act a product of

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National Health Expenditures in 2014 Grew at Fastest Pace Since 2007

National health expenditures surpassed $3 trillion for the first time in history last year, with the U.S. spending an average of $9,523 per person in 2014. Total expenditures grew 5.8 percent from 2013—the fastest rate of growth since 2007. With the implementation of hundreds of new health care regulations, the cost of health insurance has grown 41 percent from 2009 to 2014. During this period, health expenditures per capita have grown 1.1 percent faster than gross domestic product (GDP) per capita. Read more here.

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Tennessee Shuts Down Three Schools Due to Obamacare

The District of Clay County in Tennessee has shut down three schools due to budget constraints caused by the Affordable Care Act. Clay County Director of Schools Jerry Strong stated that the decision to close the schools is directly related to the health care laws mandates that the district cannot afford at this time. As a result, 1,150 students will be out of class until further notice. In addition, the state of Tennessee announced yesterday that it will shut down its health insurance co-op due to financial problems, becoming the sixth Obamacare-funded insurance co-op to collapse due to financial difficulties. Approximately 27,000 Tennesseans must now find new coverage during the upcoming enrollment period.

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Insurers Lose $2.5 Billion In Risk Corridor Payments

Last week, the Obama Administration announced that insurance companies will receive $362 million of the $2.9 billion they requested for risk corridor payments. Risk corridors are designed to cover losses under Obamacare and ease risks for health insurers by sharing gains and losses between the plans and the federal government. The ACA requires insurers to be paid the amount requested, but since the funds for these payments have not yet been appropriated it is unclear where those funds will come from. Read more about risk corridors here.

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TRICARE: The Military’s Health Care System

The DOD provides health care called TRICARE for 9.5 million military service members, retirees, and family members. The mission of the military health care system is to maintain the health of military personnel and their families, so that they are not distracted from carrying out their missions. DOD health care costs are expected to rise over the next decade, due to fewer deaths but more injuries in war, and retirees living longer and utilizing more health care services than when the TRICARE program was first implemented. Targeted, thoughtful reforms could be implemented to modernize the program and provide the quality care our troops and their families deserve within the budget realities currently facing our nation. Read more about TRICARE here.

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Medicare Part B premiums will increase by half for 25 percent of enrollees

A July report on Social Security Cost of Living Adjustment indicated there will be no 2016 increase in payments to offset the Medicare Part B premium increase, but a Hold Harmless provision will protect three-quarters of Medicare beneficiaries from these premium increases while shifting the entire burden to the other 25 percent of beneficiaries. This shift will cause monthly premiums to increase from $104.90 to $159.30 for 25 percent of beneficiaries. State Medicaid agencies will pick up a substantial share of the $6 billion tab for dual eligibles in 2016, while high-income beneficiaries could see their premiums spike to over $500. Read more here.

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Regulations Imposed By the Affordable Care Act

The administration proposed the most notable ACA rulemaking in several months. The measure, designed to ensure nondiscrimination in health programs, will bar discrimination on the basis of race, color, national origin, sex, or age. It will cost more than $900 million and impose 157,000 paperwork burden hours. Since passage, based on total lifetime costs of the regulations, the Affordable Care Act has imposed costs of $47.9 billion in state and private-sector burdens and 165.9 million annual paperwork hours. Read more here.

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Savings From Biosimilars Will Total Between $5B and $38B Over Ten Years

Biologics are stimulating an important policy debate over maintaining access to high cost medications for populations in need, while preserving the incentives to innovate new treatments. AAF expects savings of at least $5.1 billion and up to $37.8 billion over the next decade. Advancing policy that will seek to maximize biosimilar savings will depend on policymakers balancing the need to establish confidence in biosimilar products and the goal of reducing overall healthcare costs. Read more here.