Analysis Indicates ACA Helping To Lower Projected Healthcare Spending By $2.6 Trillion.

The Atlantic  (6/24, Newkirk) reported a new analysis conducted by the Urban Institute “provides strong evidence” that the Affordable Care Act “is directly lowering total health-care spending, even as it expands coverage to unprecedented levels.” Data show “projected national spending on medical services, doctors, drugs, and devices between 2014 and 2019 is now $2.6 trillion less than what was projected when the ACA was passed in 2010, and $2.1 trillion less than pre-ACA estimates.” Medicaid spending is expected to be $1 trillion lower, and private insurers will likely spend $600 million less. Meanwhile, “a shift to higher deductibles and cost sharing” {Italcis & bold added} will probably also contribute to lower costs.

Now, with 39 years in the business and medical care care costs rising what may cause this?     I highlighted higher deductibles and cost sharing for a reason, the number of insured is higher but due to out of pocket costs individuals MAY be using less services?  In 39 years I have seen this effect before, it costs more out of your pocket to seek medical care so you forego routine care and self treat.

Time will tell.   Hopefully the growth of wellness programs will be part of the impact but past history suggests otherwise.