Report Finds Reform to Save American Families Thousands in Annual Insurance Expenses
Today, Congressman Joe Baca (D-Rialto) announced the findings of a recently released report, compiled by The Center for American Progress and The Commonwealth Fund, that details the effects of the health reform law passed in March. The report concludes that the health reform enacted by Congress and the President will reduce the growth of health costs by nearly $600 billion over the next ten years, while improving access to care for more than 32 million Americans.
"With the enactment of real health reform, we are working to make quality, affordable health care a right for every American," said Rep. Baca. "The findings from this newly released report confirm that health reform lowers our national health spending even more than originally expected, by almost $600 billion from 2010 to 2019, and makes care significantly more affordable for hardworking families everywhere."
The new report projects the new law's effects on total national health expenditures and the insurance premiums families are likely to pay. Researched and written by Harvard economist David Cutler, Commonwealth Fund President Karen Davis, and Senior Research Associate Kristof Stremikis, the new report estimates that the health reform law will result in:
* Total reductions in health care spending of $590 billion from 2010 to 2019;
* Reduction in the annual growth rate in national health expenditures from 6.3% to 5.7% from 2010 to 2019;
* Savings of nearly $2,000 on annual health care premiums for the typical family by 2019;
* Deficit reduction of up to $400 billion over 10 years; and
* Medicare savings of $524 billion.
"For too long Americans have had to face the status quo of rising health costs and worsening care," concluded Rep. Baca. "Thanks to the leadership of President Obama and the Democratic Congress, the average American family will soon save $2,000 every year on insurance premiums. And by closing the Medicare "doughnut' hole, and allowing young adults to stay on their parents' insurance policies until age 26, health care reform is critical to better protecting America's senior citizens and young adults."