DENVER – As some Colorado lawmakers continue to push for the creation of an unaffordable, new state government-controlled health insurance system known as the state government option, a new study by KNG Health Consulting reveals that the number of uninsured Americans would fall significantly under an enhanced Affordable Care Act (ACA) model – providing evidence to support improving the ACA as an effective means for increasing access to affordable, high-quality health coverage and care.

The study, which was supported by the Partnership for America’s Health Care Future, estimates the effects of select ACA enhancements, including provisions similar to those in the American Rescue Plan Act (ARPA). It finds that roughly 8.1 million (30 percent) and 9.6 million (34 percent) fewer people nationwide will be uninsured after the ACA enhancements in 2023 and 2032, respectively.

Key findings include:

• Roughly 8.1 million (30 percent) and 9.6 million (34 percent) fewer people will be uninsured after the ACA enhancements in 2023 and 2032, respectively. 

• While ESI would remain the predominant source of coverage, the Marketplace would see significant growth in enrollment, because of take-up by those previously covered by ESI or uninsured. The reductions in the ESI market are, in part, due to fixing the family glitch.  

• With ACA enhancements, the total out-of-pocket spending decreases for each income group, apart from those in the highest income category. 

• Under the enhanced ACA, spending for hospital care would remain relatively unchanged, although more people would receive services. 

• Any increase in government spending from the ACA enhancements is predominantly going to low-income individuals and families that newly enroll in a Marketplace plan.

The push for a state government option in Colorado comes as “17,282 Coloradans have signed up for a health insurance plan since Connect for Health Colorado re-opened enrollment on Feb. 8, with more than 7,500 sign ups in the last month alone. That uptick in enrollments coincides with the date that Connect for Health Colorado began offering increased savings on health insurance to residents of all income ranges following the passage of the American Rescue Plan,” Connect for Health Colorado – Colorado’s state health insurance exchange – announced this month.

Under ARPA health care provisions – including an expansion of Affordable Care Act (ACA) subsidies, new COBRA subsidies, and additional Medicaid coverage – the Colorado Division of Insurance (DOI) estimates: 

• One out of five customers (21 percent) could potentially have a $0 premium if they were to stay with their current plan.

• Two out of three customers (64 percent) could potentially have a $0 premium if they were to enroll in the lowest cost plan available to them.

• Three out of four people (75 percent) could potentially have a $25 premium or less if they were to enroll in the lowest cost plan available to them.

A new analysis by the Brookings Institution also highlights the significant resources now available for Americans to obtain affordable health coverage under ARPA and concludes that elected leaders in Denver should take “caution against making lasting changes” to the state’s health care policies “until matters are clearer.”

• To read the full study by KNG Health Consulting, CLICK HERE.

• To learn more about Colorado’s Health Care Future, CLICK HERE.