Has the Affordable Care Act actually cut Medicare spending? The numbers from the Congressional Budget Office make a pretty good argument for that, and suggest that the ACA has had a distinct hand in the recent drop in the federal deficit. Detractors of the ACA say that statistical argument doesn’t tell the whole story.
From Labor Attorney Jason Cogdill:
I have received many reports about employers receiving notices from the Marketplace since the middle of last week. These are “1411 Certifications” from HHS identifying individuals currently receiving an advanced premium credit (or cost-sharing reduction) and whose application referenced a specific employer. It is likely that the majority of employers will receive at least one of these notices, so if your clients have not communicated to you about the notices, they soon will.
Thats the argument made by Fortune Magazine in a recent article. Several of the initial cost-control measures expire shortly.
The law included 3 mechanisms to keep premiums down – risk adjustment, reinsurance, and risk corridors. These were designed to give some stability as carriers were setting premiums in a new environment for which there was only limited rate experience. The loss of 2 of these mechanisms (risk adjustment isn’t expiring) will likely cause increasing premiums.
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