The Impact of Health Reform

The Impact of Health Reform

29 East Madison, Suite 602Chicago, Il 60602312-782-6006www.pnhp.org

HealthReform

Medical Bankruptcy

AdministrativeCosts

TheUninsured

The Underinsured

HealthcareCosts

Impact of Health Reform on:

The UninsuredNumber of Uninsured

Reduced from46 milliontoday to~23 millionin 2019

Safety Net Hospitals

Funding throughMedicare cutby $36 billionthrough 2019

Community Health Centers

Receive extra$1 Billionannually

Impact of Health Reform on:

The Underinsured

If you like your current coverage, you can keep it.

If you don’t like your current job-based coverage, you have to keep it.

Impact of Health Reform on:

Medical BankruptcyFor the 75% of medical bankruptcy

filers who have insuranceNo change

in bankruptcy rates

For the 25% of medically bankruptwho were uninsured in 2007

but will gain coverage under reform

Up to 50%reduction in

bankruptcy rates

Maximum expected reductionin bankruptcy rates

12.5%overall

Impact of Health Reform on:

Health Care Costs (Expansions)

All figures reflect spending through 2019

Impact of Health Reform on:

Health Care Costs (Savings)

All figures reflect spending through 2019

Impact of Health Reform on:

Cost Control Provisions

Health Reform Bill:

Proven Cost Control Provisions

Impact of Health Reform on:

Administrative Costs

Standardized claim forms: ????

Standardized claim forms: ????

IRS cost to enforce mandate: $5 - 10 billion

IRS cost to enforce mandate: $5 - 10 billion

Insurance overhead: ~13% of new premium revenues = $42

billion

Insurance overhead: ~13% of new premium revenues = $42

billion

Running insurance exchanges (based on MA):

~4% of premiums

Running insurance exchanges (based on MA):

~4% of premiums

Cap on insurance overhead: ????

Cap on insurance overhead: ????

Former VP of Public Policy for WellPoint/Anthem

Former VP of Public Policy for WellPoint/Anthem

Senate framework written by Liz Fowler

Senate framework written by Liz Fowler

Role Played by Health Industry

In Health Reform

Insurance company

ads

Insurance company

ads

Promoting reform

Promoting reformFavoring reformFavoring reform

Insurance company donations

Insurance company donations

RepublicansRepublicansDemocratsDemocrats

Pharma spent $100,000,000

supporting reform

The Impact of Health Reform

The Impact of Health Reform

29 East Madison, Suite 602Chicago, Il 60602312-782-6006www.pnhp.org