New Castle News

Community News Network

November 1, 2013

5 myths about the Affordable Care Act

(Continued)

Some companies have assigned employees to hand-check each file for errors. This works now because few people are enrolling through the exchange. But at some point, insurers expect that they'll receive thousands of files each week and won't have the manpower to check each one. If lots of people start signing up before the problem is fixed, insurers worry that they won't know who actually bought their plans. And without knowing who has subscribed, insurance companies won't be able to send out membership cards, for example, or begin paying claims for trips to the doctor.

4. The exchanges will transform the insurance industry.

While the federal exchange has gotten much attention in recent weeks, only a small fraction of Americans are expected to use the new marketplace to buy health insurance. The Congressional Budget Office estimates that, by 2023, 24 million people will buy insurance through the state and federal exchanges; that's about 7 percent of the population. It's telling that many of the large insurance companies, such as Cigna and UnitedHealthcare, have decided to participate in only a handful of the states' marketplaces. So far, they don't see this segment of the market as key to their growth.

The vast majority of Americans will still get their health insurance the way they did before the Affordable Care Act: through their employers or through a public program, mainly Medicare and Medicaid.

5. The health-care law will increase the deficit.

The Congressional Budget Office estimates that, over the next decade, the health-care law will reduce the deficit by $109 billion. That's because the Affordable Care Act includes new spending cuts and tax increases, which more than offset the cost of expanding health insurance to millions of Americans.

The law's new revenue sources fall into three main categories. First are cuts to Medicare providers, such as hospitals and doctors. Under the Affordable Care Act, the federal government will pay slightly lower rates.

Text Only | Photo Reprints
Community News Network
House Ads
Poll

Malaysia Airlines Flight 17 fell from the sky in Donetsk, Ukraine, on Thursday, killing all 298 people aboard. Many are speculating that Russian rebels (supported by Vladimir Putin) are responsible for downing the aircraft. What do you think?

Yes. All evidence points that way.
No. Everyone is so quick to point fingers, but there's not enough evidence to support claims of Russian guilt.
I'm not sure. I'll just wait until the investigation is over to make up my mind.
What is up with these Malaysian Airlines planes? I know one airline I won't be flying any time soon...
     View Results