Nongroup market sees reduced financial burden from Affordable Care Act, study shows

New research from Health Affairs shows but one group that has benefitted financially from the Affordable Care Act is the nongroup market, people purchasing coverage directly from insurers, as a new study shows the law reduced their financial burden.

Rising premiums have been one of the thornier side effects of the Affordable Care Act.

Specifically, the share of nongroup consumers who spent more than 10 percent of their family income on medical expenses declined 6.7 percent from 2013-2015, and average family medical expenses declined by $811 for those in the nongroup market.

Before passage of the ACA, people in the nongroup market were statistically more likely than others to experience financial burden due to medical concerns. In 2013, 44.9 percent of nongroup consumers experienced financial burden, but by 2015 that number had dipped to 38.2 percent.

[Also: Uninsured rate among people aged 19-25 drops by nearly 50% in 2016, thanks to ACA, CDC says]

The study found that this discrepancy was likely due to several of the ACA's reforms, such as eliminating medical underwriting and introducing subsidies to mitigate the burden of premiums and cost sharing. The ACA also, of course, introduced health insurance Marketplaces, in which qualified people can purchase subsidized coverage. More than 60 percent of people in the nongroup market now purchase coverage from a federal or state Marketplace.

The cost savings were more pronounced among families with children, those with low incomes, and for families in Medicaid expansion states.

For those outside of the nongroup market, the news wasn't quite as stellar. The total under-65 population saw a slightly increased financial burden -- 18 percent of them were financially burdened in 2013, compared to 18.8 percent in 2015. According to the report, this is partially due to the fact that, once people become insured, they face new expenses from premiums, along with incentives to use more care because of a reduction in the price of care at the point of service.

[Also: Centene commits to ACA exchanges for 2018, basks in 69% revenue growth]

Overall, there was a $159 increase in total family medical spending from 2013 to 2015, a difference that was driven by rising premiums. But for those with nongroup coverage, spending declined sharply, from $7,835 in 2013 to $6,279 in 2014 -- a 20 percent decrease -- and to $7,024 in 2015, a 10 percent decrease from 2013.

The $811 difference in spending between 2013 and 2015 was concentrated in premiums. Family out-of-pocket spending declined for people enrolled in Medicaid or CHIP. Those with employer-sponsored insurance saw a small increase in total spending.

Data for the study came from the Current Population Survey Annual Social and Economic Supplement, a nationally representative survey of noninstitutionalized citizens.

Twitter: @JELagasse