Healthcare Reform to Save $590 Billion

NEW YORK, May 21 (UPI) — An analysis of U.S. healthcare reform signed into law last March estimates health insurance premiums to drop some $2,000 per family, two non-profits say.

The report by the Commonwealth Fund and the Center for American Progress on the Patient Protection and Affordable Care Act of 2010 finds the legislation will reduce healthcare costs by $590 billion from 2010 to 2019, while improving healthcare access to about 32 million uninsured.

David Cutler, an economist at Harvard and the Center for American Progress senior fellow, and Karen Davis, president of the Commonwealth Fund, say most assessments of the law focused on its impact on the federal budget, not on its impact on overall healthcare spending. The report estimates the law will decrease the growth in health spending from 6.3 percent to 5.7 percent per year.

However, the report estimates government deficit reduction of up to $400 billion over 10 years, far in excess of that predicted by the Congressional Budget Office and the Office of the Actuary within the Centers for Medicare and Medicaid Services.

The law establishes new insurance market rules, health insurance exchanges and delivery system reforms that will result in healthcare modernization and subsequent savings, the study authors say.

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