HHS released a report that says the Patient Protection and Affordable Care Act already is limiting insurance premiums and offering more health insurance choices for families and businesses.
Reform law easing price of premiums: HHS
The HHS report highlights a number of situations in which people or businesses the agency says will lead to reduced costs or reduced growth in costs. The report said that a family of four with an income of $33,525 could save as much as $14,900 per year because of tax credits and reduced cost sharing that result from the Affordable Care Act. And it says that in 2014, small businesses on average can save up to $350 per family policy and many may be eligible for tax credits worth up to 50% of their premiums.
But the report's focus on premiums and lack of discussion of costs was criticized in a prepared statement from Karen Ignagni, president and CEO of America's Health Insurance Plans. “The document released today overstates the cost savings associated with certain provisions of the new law and ignores major provisions that will raise premiums, including the new premium tax, age rating restrictions that impact younger workers, and benefit mandates that exceed the coverage that many purchase today,” Ignagni wrote. “While tax credits are important to help people pay for coverage, tax credits do not bring down the growth of medical costs or reduce health insurance premiums.”
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