Mar 23, 2016
ANALYSIS: ACA Failing by the Administration’s Own Standards
Post by Derek Yale
Arlington, VA — On the six-year anniversary of the Affordable Care Act, a new analysis from Freedom Partners Chamber of Commerce debunks the central and often-repeated claims of the Obama administration – that the law has helped “bend the cost curve” and slow the growth of health care premiums.
The Freedom Partners analysis, “The Burden of Health Insurance Premium Increases On American Families,” builds upon a 2009 Obama administration report that found that premiums for employer-sponsored health insurance plans jumped from the late 1990s to the early 2000s. The administration used this report to help pass Obamacare, claiming that the Affordable Care Act would be the fix. But the new Freedom Partners report has found that the rate of health care premiums has not reversed or even stalled since the ACA was enacted — rather, the employer-sponsored health care premiums have grown.
In the five years leading up to the Affordable Care Act’s passage, annual premium increases for families using employer-sponsored health insurance averaged 4.8 percent. But since the law was enacted, that average has risen – annual premium increases averaged five percent between 2010 and 2015.
At the same time, wages have remained stagnant — meaning for millions, health coverage is even less affordable. In fact, premiums have increased faster than wages in 47 states. Meanwhile, the average deductible for employer-sponsored plans increased from $303 in 2006 to $1,077 in 2015.
Freedom Partners Senior Policy Advisor Nathan Nascimento issued the following statement:
“The Administration claimed the ACA would bend the cost curve, but our report shows it bent in the wrong direction – premiums didn’t slow down under the Affordable Care Act, they sped up. No wonder the White House is trying to change the national conversation away from health care costs. By their own standards, the Affordable Care Act has failed.”