The Office of the Actuary at CMS has performed a wonderfully detailed and well-presented analysis of the financial impact of the “Patient Protection and Affordable Care Act”. The analysis breaks the provisions of the act into 6 major components and estimates the 10-year cost impact of each. These components are:

• Expansion of Coverage (including Medicaid)
• Changes to Medicare Payments
• Other Medicaid/CHIP provisions
• Proposals to Control Health Care Cost Trend
• Community Living Assistance Services and Supports (“CLASS”), and,
• Immediate Health Insurance Reforms

According to the study, the net cost over the period 2010-2019 would be $280 million, predominantly derived by the cost of expanded coverage offset by the savings in Medicare disbursements.

The study is well-conceived and very educational. We recommend it highly, not only for its actuarial analysis but also as a refresher on the pillars of the Senate Health Reform bill.

The paper can be accessed at the following link:

http://www.cms.hhs.gov/ActuarialStudies/Downloads/HR3200_2009-10-21.pdf