What will happen to health care spending if the American Rescue Plan Act premium tax credits expire?: estimated impact on health care provider revenue

What will happen to health care spending if the American Rescue Plan Act premium tax credits expire?: estimated impact on health care provider revenue

Collection:
Health Policy and Services Research
Author(s):
Buettgens, Matthew, author
Contributor(s):
Robert Wood Johnson Foundation, issuing body.
Urban Institute, issuing body.
Publication:
Washington, DC : Urban Institute, May 2022
Language(s):
English
Format:
Text
Subject(s):
Financing, Government -- legislation & jurisprudence
Health Equity -- economics
Health Expenditures -- statistics & numerical data
Health Policy
Insurance, Health -- economics
Medically Uninsured -- statistics & numerical data
Social Mobility
United States
Genre(s):
Technical Report
Abstract:
The American Rescue Plan (ARP) Act of 2021 increased premium tax credits (PTCs) for Marketplace coverage and extended eligibility for PTCs to people with incomes above 400 percent of the federal poverty level (FPL). Consequently, Marketplace enrollment reached a record high during the 2022 open enrollment period (OEP), which ended in January 2022. However, these enhancements will expire after 2022 unless Congress extends them. In a prior study, we estimated that if enhancements are not extended, 3.1 million more people would be uninsured in 2023, and Marketplace enrollees would spend hundreds of dollars more per person on premiums. In this new analysis, we find that with the increase of uninsured people, health care spending by private and public insurers and households would decline by $11.4 billion in 2023 if enhanced PTCs expire. Uninsured individuals use substantially less health care than insured individuals. We estimate spending decreases of $3.8 billion on hospital services, $1.3 billion on services in physician practices, $3.4 billion on other services, and $2.8 billion on prescription drugs. Thus, if enhanced PTCs are not renewed, not only would health care provider revenue be lower, but more than 3 million people would become uninsured, receive less health care, and likely experience greater morbidity and financial insecurity.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY-NC-DC license. (More information)
Extent:
1 online resource (1 PDF file (10 pages))
NLM Unique ID:
9918486685306676 (See catalog record)
Permanent Link:
http://resource.nlm.nih.gov/9918486685306676