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True Cost of Obamacare Won’t be Known Until 2016

Those who are expecting to receive answers on the real cost of the Patient Protection and Affordable Care Act may find themselves waiting a bit longer than the implementation deadline of 2014. A report from HealthPocket, a firm that compares healthcare plans, has just released a study that shows we won’t know the true, bottom-line figure until 2016 or later.

The delay in reaching a final tally is due to an expected spike in demand for medical services. From June 5-7, HealthPocket surveyed 1,356 adults in the United States, asking them a simple question: “Would better health insurance coverage lead you to see the doctor more often or get a medical procedure you had put off?”. The results of the study suggest that when the PPACA takes effect, Americans who have put off seeking healthcare will suddenly begin to do so, causing a short-term surge in demand.

Specifically, the study found that 57 percent of respondents would change the way they use medical services after the implementation of PPACA. More than a quarter (27 percent) said that they would visit the doctor more frequently, and 15 percent replied that they would now schedule a procedure which they had been postponing.

Since 42 percent of survey respondents indicated that they would seek medical services more often, HealthPocket released the following statement:

“Insurance premiums in the second year of Obamacare, 2015, may experience a temporary rise due to the pent-up demand for medical procedures being addressed in 2014. Assuming a two-year period for consumers to exhaust pent-up healthcare demand, the true baseline for Obamacare’s effect upon health insurance premiums should be evident in 2016.”

HealthPocket estimated that the short-term demand for increased medical services would phase out by 2016, and demand should stabilize at that point. However, the increased cost of more frequent usage of medical services should reach a plateau, rather than dropping back to former levels. By 2016, the rise in premiums due to increased demand for medical care could be calculated, and the actual cost of the PPACA can be determined.

Steve Amante is the President and CEO of Amante & Associates Insurance Solutions, Inc. To learn more about Healthcare Reform contact Steve Amante or Frank Faldmo the firm’s Employee Benefits Advisor at (951) 676-8800 or visit:

Written by Steve Amante

Steve Amante is the owner of Amante & Associates Insurance Solutions, Inc. He can be reached at 951-676-8800.

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