The Clinton Herald, Clinton, Iowa

Food & Health

November 1, 2013

5 myths about the Affordable Care Act

(Continued)

Some companies have assigned employees to hand-check each file for errors. This works now because few people are enrolling through the exchange. But at some point, insurers expect that they'll receive thousands of files each week and won't have the manpower to check each one. If lots of people start signing up before the problem is fixed, insurers worry that they won't know who actually bought their plans. And without knowing who has subscribed, insurance companies won't be able to send out membership cards, for example, or begin paying claims for trips to the doctor.

4. The exchanges will transform the insurance industry.

While the federal exchange has gotten much attention in recent weeks, only a small fraction of Americans are expected to use the new marketplace to buy health insurance. The Congressional Budget Office estimates that, by 2023, 24 million people will buy insurance through the state and federal exchanges; that's about 7 percent of the population. It's telling that many of the large insurance companies, such as Cigna and UnitedHealthcare, have decided to participate in only a handful of the states' marketplaces. So far, they don't see this segment of the market as key to their growth.

The vast majority of Americans will still get their health insurance the way they did before the Affordable Care Act: through their employers or through a public program, mainly Medicare and Medicaid.

5. The health-care law will increase the deficit.

The Congressional Budget Office estimates that, over the next decade, the health-care law will reduce the deficit by $109 billion. That's because the Affordable Care Act includes new spending cuts and tax increases, which more than offset the cost of expanding health insurance to millions of Americans.

The law's new revenue sources fall into three main categories. First are cuts to Medicare providers, such as hospitals and doctors. Under the Affordable Care Act, the federal government will pay slightly lower rates.

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