GAO releases report on employer-sponsored coverage in the ACA
Posted on August 14, 2012 | No Comments
The Government Accountability Office (GAO) released a report yesterday which reviews estimates of the impact of the Affordable Care Act (ACA) on employer-sponsored coverage. According to some researchers, the ACA’s Medicaid expansion and subsidized coverage for low- and moderate-income people who buy health insurance through Exchanges beginning may discourage employers from offering coverage. However, other researchers believe that the financial penalties imposed by the ACA will actually encourage employers to offer coverage. The GAO report examines 27 studies published between January 1, 2009 and March 30, 2012 that offer estimates regarding changes in employer-sponsored health coverage as a result of the ACA.
- Between 2010 and 2013, eligibility and participation in employer-sponsored plans remained relatively steady. Around 88% of full-time employers offer health insurance, and 65% of employees accept it.
- Premium costs rose moderately for all age groups, leveling off more so in the last two years. Increases were greatest for employees under 30, half of whom accepted employer-sponsored coverage.
- Employees with higher incomes had higher premiums, attributable to these individuals also having more dependents. Premium contributions as a percentage of income was also higher for employees earning lower wages.