Yet another study suggests that employee benefits, as well as those in the private care industry, will swell substantially once the Patient Protection and Affordable Care Act (ACA) goes into place in less than half a year.
According to the study, which was conducted by the consulting firm Millman at the direction of bipartisan public policy organization Center Forward, health insurance costs in at least six states could jump by 40 percent as a result of the strictures and regulations outlined in the ACA.
The study was based on premium data from six states specifically, including Arizona, Florida, Illinois, New Jersey, Ohio and Wisconsin.
In addition to the overall costs that the ACA could create, the report also analyzed how the inclusion of subsidies would address the affordability issue. The report found that for people whose incomes will force them to pay for a higher amount of the subsidies, they may be better off paying the penalty that comes with not purchasing health insurance than to abide by the mandate and purchase coverage.
In addition to private citizens, companies that employ more than 50 workers will also be levied a penalty if they don't provide coverage to their workers, the cost of which may total between $2,000 and $3,000. Some business owners have indicated that they, too, may be better off incurring the penalty than comply with the ACA.
Numerous studies have pointed to the potential for the ACA to drive healthcare costs higher. Earlier this year, the Society of Actuaries released a report indicating that the changes to the insurance system resulting from the health reform law could cause insurance costs to jump 32 percent, with as many as 43 states seeing double-digit increases.
