Eliminating Affordable Care Act May Cause Nearly 10 Million People To Lose Their Insurance

According to a recent study, if the government was to eliminate the Affordable Care Act, otherwise known as Obamacare, many of the low- and moderate-income people who purchased coverage through the federally run health insurance marketplaces would sharply boost costs and reduce enrollment in the individual market by more than 9.6 million.

The researchers modelled the likely effects of ending the said subsidies in 34 states where the federal government operates insurance marketplaces for individuals, such a move would cause individual market enrollment to drop by 70 percent among people buying policies that comply with the federal Affordable Care Act.

As stated by the study’s senior author and senior economist at RAND, the disruption would cause significant instability and threaten the viability of the individual health insurance market in the states involved. Their analysis only confirms to show how much the subsidies are an essential component to functioning of the ACA-compliant individual market.

The researchers also found out that the effects of ending federal subsidies would be larger in states with federally run marketplaces than in states that run their own marketplaces.

Among the reasons for that difference is that states with federally dun marketplaces generally have higher proportions of low-income individuals, who tend to be more sensitive to insurance prices and are therefore more likely to drop insurance without subsidies.

In addition to those that were stated, most of these said states did not expand Medicaid to cover more people as allowed under the Affordable Care Act. Therefore, there generally are more low-income people buying policies in those states’ insurance marketplaces.

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