Congresswoman Matsui Highlights New Report That Shows ACA is Helping Slow Growth in Health Care Costs

FOR IMMEDIATE RELEASE
Wednesday, November 20, 2013

CONTACT: JONELLE TRIMMER
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Congresswoman Matsui Highlights New Report That Shows ACA is Helping Slow Growth in Health Care Costs

Report from White House Council of Economic Advisors details that health care spending growth is at the lowest on record

Today, Congresswoman Doris Matsui (CA-06) announced that a new report prepared by the White House Council of Economic Advisors finds that, thanks in part to the Affordable Care Act (ACA), health care spending growth is at the lowest on record. Real per capita health care spending has grown at an estimated average rate of just 1.3 percent a year since 2010, the year the ACA was enacted. This is the lowest rate on record for any three-year period.

"The CEA report released today highlights that the Affordable Care Act has played a role in slowing health care cost growth," said Congresswoman Matsui. "Slower growth in health care spending is good for American families, good for businesses, and good for our economy. While there is still work to be done to smooth implementation, the Affordable Care Act is benefiting many Americans, and today's report is the most recent example."

The CEA report concludes that the slower growth in health care costs, thanks in part to the ACA, is likely to have substantial benefits for the nation's economy in both the short-run and long-run, including:

• Slower health cost growth is good for families, giving them more financial and health security. The new report finds that, if just half the recent slowdown continues, health care spending a decade from now will be $1,400 lower per person, on average.
• Slower health cost growth is good for businesses, improving their balance sheets. The recent slower growth of health care costs has reduced employers' benefit costs, thereby increasing firms' incentives to hire additional workers.
• The recent slow growth of health care costs also helps reduce long-term deficits. In large part because of the ACA's role in slowing the growth of health care spending, CBO estimates that the ACA will reduce deficits by about $100 billion over the coming decade and by an average of 0.5 percent of GDP ($83 billion a year in today's economy) over the following decade.

"The Affordable Care Act is providing American families, students and seniors more security by holding insurance companies accountable, bringing down health care costs, and ensuring individuals are able to enroll in health insurance. Since 2010, the law has helped over 3 million young people, who otherwise would be uninsured, gain coverage under their parents' health plans. Additionally, starting in 2014, the ACA will finally end discrimination against people with preexisting conditions. No longer will 129 million Americans with health conditions have to live in fear of seeing their rates hiked or losing their coverage all together. Also starting in 2014, being a woman will no longer be considered a preexisting condition, and insurers will no longer be able to charge women higher premiums than men," added Congresswoman Matsui.

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