Health Care Blog

Seniors Seeing the Savings from the Affordable Care Act

Last week, several announcements from the Department of Health and Human Services (HHS) showed how people with Medicare are already benefiting from the Affordable Care Act:

• Nearly 3.6 million people with Medicare saved $2.1 billion on their prescription drugs in 2011 thanks to the Affordable Care Act.
• The average person with Medicare will save nearly $4,200 by 2021 because of the new law.
• Medicare Advantage premiums have fallen by 7 percent on average and enrollment has risen by about 10 percent from 2011, and premiums are down by 16 percent since 2010.

HHS Secretary Kathleen Sebelius talked about these announcements during her trip to Florida, where 238,362 Florida residents with Medicare saved $141,948,339 on their prescription drugs in 2011 thanks to the health reform law, the Affordable Care Act.  Behind these numbers are compelling stories like that of Floridian William Morris who saved $2,000 on the cost of his chemotherapy because of the law.

In Orlando, the Secretary participated in a State of Seniors Health discussion, addressing 85 seniors and community leaders at the Beardall Senior Center. She was joined by a number of panelists including Orlando pharmacist Carmen Rosado. As the Orlando Sentinel reported, Carmen is now retired and on Medicare, so she has seen both sides of the Part D program. She shared that:

“In the 46 years I practiced pharmacy, I have seen seniors who had to decide whether to eat or buy their medicines,” Rosado said Thursday. “Sometimes I would pay for their medicines, because [their situation] would hurt me. They would say: ‘Of all these medicines, which are the important ones?’ With the health law, they can continue with their drug regimen to better their health.”

Health Reform, Preventive Services, and Religious Institutions

Thanks to the Affordable Care Act, most health insurance plans will cover women’s preventive services, including contraception, without charging a co-pay or deductible beginning in August, 2012.  This new law will save money for millions of Americans. But more importantly, it will ensure Americans nationwide get the high-quality care they need to stay healthy. Under this policy, women who want contraception will have access to it through their insurance without paying a co-pay or deductible.  But no one will be forced to buy or use contraception.

On January 20^th, Secretary Sebelius announced that certain religious organizations including churches would be exempt from paying their insurers to cover contraception. Other religious organizations, including those that employ people of different faiths, can qualify for a one-year transition period as they prepare to comply with the new law. In recent days, there has been some confusion about how this policy affects religious institutions. We want to make sure you have the facts:

• Churches are exempt from the new rules: Churches and other houses of worship will be exempt from the requirement to offer insurance that covers contraception.
• No individual health care provider will be forced to prescribe contraception: The President and this Administration have previously and continue to express strong support for existing conscience protections.  For example, no Catholic doctor is forced to write a prescription for contraception. 
•  No individual will be forced to buy or use contraception: This rule only applies to what insurance companies cover.  Under this policy, women who want contraception will have access to it through their insurance without paying a co-pay or deductible.   But no one will be forced to buy or use contraception.
• Drugs that cause abortion are not covered by this policy:  Drugs like RU486 are not covered by this policy, and nothing about this policy changes the President’s firm commitment to maintaining strict limitations on Federal funding for abortions. No Federal tax dollars are used for elective abortions.
• Over half of Americans already live in the 28 States that require insurance companies cover contraception: Several of these States like North Carolina, New York, and California have identical religious employer exemptions.  Some States like Colorado, Georgia and Wisconsin have no exemption at all.
• Contraception is used by most women: According to a study by the Guttmacher Institute, most women, including 98 percent of Catholic women, have used contraception.
• Contraception coverage reduces costs: While the monthly cost of contraception for women ranges from $30 to $50, insurers and experts agree that savings more than offset the cost.  The National Business Group on Health estimated that it would cost employers 15 to 17 percent more not to provide contraceptive coverage than to provide such coverage, after accounting for both the direct medical costs of potentially unintended and unhealthy pregnancy and indirect costs such as employee absence and reduced productivity. 

 The Obama Administration is committed to both respecting religious beliefs and increasing access to important preventive services. And as we move forward, our strong partnerships with religious organizations will continue. The Administration has provided substantial resources to Catholic organizations over the past three years, in addition to numerous non-financial partnerships to promote healthy communities and serve the common good. This work includes partnerships with Catholic social service agencies on local responsible fatherhood programs and international anti-hunger/food assistance programs. We look forward to continuing this important work.