ACA Subsidies Associated with Lower Out-of-Pocket Spending

HealthLeaders Media March 1, 2021
Jack O'Brien

Marketplace subsidy implementation was also associated with a 30% lower probability of catastrophic health expenditures among low-income adults.

Affordable Care Act (ACA) marketplace subsidies were associated with lower out-of-pocket spending among healthcare consumers, according to a Health Affairs study released Monday afternoon.

In reviewing survey data from 2008 to 2017, researchers found that marketplace subsidy implementation was associated with a 30% lower probability of catastrophic health expenditures among low-income adults, those at 139–250 percent of the federal poverty level (FPL).

Among that same group, individual marketplace subsidy implementation was also associated with a 17% drop in out-of-pocket spending.

Meanwhile, middle-income adults, those at 251–400% of the FPL, did not “experience reduced financial burden by either measure.”

The study concluded that...

Today's Sponsors

Today's Sponsor