As a new study from Hewitt Associates reveals, the cost of health care has been rising by up to double digits for more than a decade. The study also demonstrates that the passage of the Affordable Care Act came at a critical time.
The study confirms our own analysis – that the potential premium impact of the new consumer protections that went into effect last week – from covering adult children on parent’s plans to eliminating lifetime limits, preventing insurance companies from dropping you when you are sick, and eliminating discrimination against children with pre-existing conditions – is roughly 1-2 percent of the more than 8 percent projected increase in the study. And it’s important to remember that any increases will be offset by a number of provisions in the new law that will save money for consumers and employers. The new law will help bend the cost curve of health care for employers and their workers by:
Last week, we celebrated the six month anniversary of the law and the day when the worst insurance company practices began to be eliminated. This week, we’ll continue our efforts to implement the new law and deliver the benefits of reform – including the $100 billion the law will reduce the deficit this decade and the trillion dollars in the next decade — to the American people.
Stephanie Cutter is Assistant to the President for Special Projects