• WisBusiness

Friday, August 26, 2011

What does federal health care reform mean for Wisconsin?


By Dennis G. Smith
According to the latest nationally available data from the Kaiser Family Foundation, 90 percent of people in Wisconsin have health insurance coverage. Only three states are doing better than Wisconsin in covering their citizens. We achieved this high level of coverage without resorting to controversial government mandates to purchase coverage, like the one included in the Patient Protection and Affordable Care Act (PPACA). Until now, little attention has been directed to the impact of PPACA on health insurance markets in Wisconsin.

In June 2009, President Obama visited Green Bay and promised three things to those who already have health insurance—the rising rates of health care costs would decline, the cost of insurance would be lower, and everyone could keep the health plan they have. Now, two years later, the outlook is quite different.

The impact of PPACA on those with insurance will differ based on factors such as income, age, family size, and where you get coverage. Analysis shows that 87 percent of individuals in the individual market, will see premiums that will be 41 percent higher under PPACA. These changes described here represent only the effect of the law. The changes in premiums do not include medical inflation, which is projected to continue to increase faster than wages each year. The changes in premiums also do not reflect other changes such as reinsurance and risk adjustment which may mitigate some of the cost increases. Many individuals will qualify for new generous public subsidies to help pay for the cost of coverage. But even after these new subsidies are provided, 59 percent of the individual market will experience an average premium increase of 31 percent.

Young people will be hit harder with premium increases than older individuals. Looking only at age, the total cost of coverage for an individual age 19-29 in the current individual market would be $1,631 ($1,229 for premium plus $402 for out-of-pocket expenses). With the changes of PPACA, total costs will increase by 34 percent for such an individual. However, if you are in the 55-64 age group, your costs will be about the same. Total expenses without PPACA would be $5,860 compared to $5,829 with PPACA.

A family of four that does not qualify for a subsidy can expect to face an increase in total costs of 28 percent due to PPACA, rising from $8,528 to $10,912. For those who are covered by the small employer group market, the average premium increase will be 15 percent.

The new subsidies do not lower the cost of insurance, they only shift the cost of who is paying. More than 46 percent of individuals that will receive new public assistance either through the subsidies or Medicaid already had coverage, meaning that billions of dollars that are spent will not buy any new coverage.

The majority of people in Wisconsin get their health insurance coverage through their employer. Employer sponsored insurance provides 57 percent of the coverage in Wisconsin, compared to 49 percent nationally. Without PPACA, employer sponsored coverage would grow by 8 percent. Those covered by large employers (more than 50 employees) would expand by 300,000 and those covered by small employers would increase by 30,000. Individuals covered by public insurance (principally Medicaid) would fall by 50,000 due to improvements in the economy. People covered by the individual market would stay steady at 180,000 covered lives.

With PPACA, the existing individual market will be nearly wiped out, shrinking from 180,000 individuals to just 30,000. Another 130,000 individuals will be added to the Medicaid program and 90,000 individuals will depend on new federal assistance to pay the cost of their health insurance. Those covered by employer sponsored insurance will experience both gains and losses. More than 150,000 individuals will lose coverage through their employers, while nearly the same amount will gain coverage through their employers, with an overall net decline of 10,000 in employer coverage. The small group market will be especially volatile with 285,000 people moving among the different options. Only 60,000 people are expected to remain in their current small group coverage.

The implementation of PPACA will bring both opportunities and threats. If you work for a large company that provides health insurance coverage, the impact of PPACA should be modest. But it will be a wild ride for everyone else.

-- Smith is secretary of the Wisconsin Department of Health Services.

Labels:


Comments: 7

At October 31, 2015 at 5:43 AM, Blogger Frank Danley said...

Shared belief's (an ACA-made CO-OP) starting rate proposition didn't appear on Healthcare.gov's rate survey device (and still doesn't) so we can expect it was under ten percent.

best thesis writing service

 
At June 26, 2016 at 11:49 AM, Blogger Lisa Kelley said...

That’s going to be spectacular! But I’ll stay home, playing http://777spinslot.com/mr-green-casino . Don’t think, that could be boring, no. If you go with me, you’ll be amazed!

 
At August 17, 2016 at 12:13 AM, Blogger Alex John said...

I am to a great degree astonished at what I found here. It is a remarkable Article. Much obliged to you much.
Fast Ion Battery Case Solution

 
At November 11, 2016 at 10:54 AM, Blogger Allen said...

Good article. I read to the end. I liked everything. I like to read articles and play here http://777spinslot.com/lucky-ladys-charm-free. As time goes by much better.

 
At November 21, 2016 at 6:30 AM, Blogger Stats Key said...

do my statistics homework for me
Thank you for helping people get the information they need. Great stuff as usual. Keep up the great work!!!

 
At November 21, 2016 at 6:40 AM, Blogger Finance Assignments said...

yeah it was such an awesome blog that i have updated.. :)
finance assignment writing

 
At November 21, 2016 at 6:53 AM, Blogger Hr Assignment said...

Those who come to read your article will find lots of helpful and informative tips
HRM Assignment Homework Help

 

Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed
ADVERTISEMENT
ADVERTISEMENT

wisbusiness.com Social News

Follow Us

Site Sponsors

ARCHIVE

· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications