ACA-Driven Competition Lowers Health Insurance Premiums - The Minute

A key point in the argument for the Affordable Care Act was that its reforms would lower the cost of health insurance by increasing competition among insurers. Now, with the Act in action, the question becomes, just how much savings are being produced? A projected eleven percent, concludes a new study by researchers from Northwestern University and M.I.T., potentially saving one point seven billion dollars in federal premium subsidies. That’s their hypothetical finding through an analysis of 34 state exchanges, based on projections IF all health insurers in every state’s 2011 market had joined that state’s exchange in 2014—which they did not. If just one company of the many who did not participate in 2014 had joined state exchanges—United Healthcare, the nation’s largest with 84 million policies—premiums would have been lower by five point four percent.

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