Group outlines financial benefits of health care plan for Iowans

A Washington-based health consumer group called Families USA issued a report today indicating that an Iowa family household earning less than $100,000 year could realize an average savings of $2,390 once the federal Affordable Health Care Act is fully implemented in 2019.

The report titled “The Bottom Line” details a range of health reform benefits that includes protection against high deductibles and co-payments, elimination of lifetime and annual limits on covered benefits, and improvements to the health care delivery system itself.

However, Ron Pollack, executive director of Families USA, said the “bottom line” remains the key health pocketbook concern and his group's analysis had determined that the federal health-care reform act will provide a benefit to Iowa families by reducing costs for health coverage and care, which in turn will mean more money for other family priorities.

According to the Families USA report, Iowa households earning less than $100,000 annually will be about $2,390 better off in 2019. Households with income under $30,000 will be $3,505 better off; households with income between $30,000 and $50,000 will be $1,976 better off; and households with income between $50,000 and $100,000 will be $1,462 better off once the federal reforms are fully implemented.

“As this report makes clear, the Affordable Care Act will put extra cash in the pocketbooks of Iowa families-those who now have health coverage and those who are currently uninsured,” said Pollack in a news release. “While both groups benefit, however, they benefit in different ways.

“Families who have coverage currently face rising premiums and increasing out-of-pocket payments for deductibles, copayments and uncovered care,” he added. “The financial benefits of health reform will come to these families in the form of lower premiums and reductions in out-of-pocket spending when they seek care.”

According to the report, Iowa families who had coverage before reform who see the following impact: households with income under $30,000 will pay $996 less in premiums; households with income between $30,000 and $50,000 will pay $990 less in premiums; and households with income between $50,000 and $100,000 will pay $786 less in premiums.

“Families now without coverage will benefit from health premium tax credits and from access to new state marketplaces, where they can shop for individual and family policies at competitive rates,” Pollack said, “and lower-income families will benefit from the fact that Medicaid eligibility is being extended to include families with annual incomes at or below 133 percent of the federal poverty level.”

For Iowa families who were uninsured before the federal health care reform act was passed, the impact would be as follows: households with income under $30,000 will receive an average of $5,651 in help with the cost of health coverage; households with income between $30,000 and $50,000 will receive an average of $4,509 in help with the cost of health coverage; and households with income between $50,000 and $100,000 will receive an average of $3,276 in help with the cost of health coverage, according to the Families USA findings.

In addition to getting financial assistance with the upfront costs of obtaining health coverage, Iowa families also will benefit from lower out-of-pocket costs associated with their claims for health coverage, spending on average $209 less out of pocket under the Affordable Care Act in 2019 than they would have without reform, the report noted.

In the final analysis, Pollack said, the law will benefit all health care consumers.

“It's a sad commentary on political discourse that irresponsible politicians continue to use the Affordable Care Act as a political target, instead of actually explaining to their family and business constituents what's in the law, when its provisions take effect, and how they can take advantage of its many benefits,” he said. “Numerous provisions of the Affordable Care Act have already been put into place that help children, young adults, families and seniors, and the law also includes a broad range of initiatives to help contain costs, improve quality and promote prevention,” he said

“The bottom line of health reform for Iowa, however, is better care, accessible care, and affordable care for families, and more money in their wallets,” Pollack said. “This is the goal of reform, and this is where we are headed.”