The ACA: Good for New Hampshire

March 23d marked the third anniversary of the Affordable Care Act (ACA) – more commonly known as Obamacare.  Although the law has been poorly understood, opposition to it had declined and many of its most ardent opponents now recognize that it is likely here to stay.  The Supreme Court found the law constitutional, and despite the hope of many of the president’s opponents, Obamacare did not prevent his reelection last fall.

In New Hampshire the Affordable Care Act has already significantly expanded coverage.  Preventive coverage has been expanded for 365,000 privately insured New Hampshire citizens with no cost sharing; 165,000 Granite Staters currently enrolled in traditional Medicare have also received free preventive care services.  In many cases, prevention not only saves money but also increases chances for successful treatment.

This year, the ACA will continue to expand available options for affordable health insurance.  Beginning in October, Granite Staters who had trouble finding affordable health care coverage will be able to enroll in a state based health insurance exchange – a more organized and competitive market place to purchase health insurance.

The ACA also strengthens Medicare.  It extends the life of the Medicare Trust Fund and closes the notorious Part D “Doughnut Hole.”  In 2012, more than 12,000 New Hampshire seniors saved over 8.2 million dollars collectively on their prescription drugs - an average savings of nearly $700 per senior annually.  Beginning next year, the law will limit the amount Medicare Advantage plans can spend on administrative costs and profits.

 The Affordable Care Act is helping young people as well.  In New Hampshire alone, 10,000 young people under the age of 26, who might otherwise have been uninsured, were able to obtain health insurance through their parents’ coverage last year.  And an additional 600 Granite Staters who were denied health insurance because of a preexisting condition are now insured.

Perhaps most importantly for many middle class families, health care inflation, after skyrocketing out of control for so long, is finally in decline.  In January, health care cost inflation dropped to 1.5%, one the of the lowest rates on record. 

Although the precise reason for this decline is unclear, many observers have credited the ACA with having played an important role.  This is particularly true for spending on Medicare, which according to recent projections, will grow at a much slower rate than expected, despite the aging of the baby boomers. 

At the same time nearly 23,000 New Hampshire small businesses are now eligible for tax credits. This will help businesses offset the costs of purchasing coverage for their employees and make premiums more affordable.

It is important to keep in mind that the ACA is a work in progress.  Like Social Security and Medicare, it is likely to be altered as circumstances change.

However, three years later, it is clear that passing health care reform was the right decision.  It is moving us forward towards better and more affordable health care.

Stephen Gorin, Ph.D., MSW is a Professor at Plymouth State University and Executive Director of the NH Chapter of the National Association of Social Workers.