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      How Have Workers Fared Under the ACA?

      Brief Nov-01-2018 | Gangopadhyaya A, Garrett B, Dorn S | 1-min read
      1. Insights
      2. Our Research
      3. How Have Workers Fared Under the ACA?
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      RWJF Promise Story- Childhood Obesity- Nashville, TN, March, 2011. Re/Storing Nashville: Faith-Based Initiatives Save-A-Lot 2400 Clarksville Pike

      The Affordable Care Act had no adverse impact on employer health coverage. Concerns about lower hours worked and lower wages earned did not materialize.

       

      The Issue

      Concerns regarding negative effects on employment and employer-sponsored insurance (ESI) did not come to fruition according to an Urban Institute analysis of federal data from the American Community Survey. In fact, between 2010 and 2016, employment increased, as did health insurance coverage offered to these workers. (The term “worker” refers to people who are currently employed and excludes those who are not currently employed but are seeking employment.) Specifically, workers in historically low-insurance rate jobs experienced an increase—e.g., restaurant and retail workers. The findings indicate that coverage gains were well-targeted to workers and their dependents who most needed the assistance.

       

      Key Findings


       

      • Overall, employment increased by 8.2 percent as coverage rose by 9.6 percent.
      • Among employees earning less than $15 per hour (jobs in food preparation and service; farming, forestry, and fisheries; building and grounds maintenance; personal care; health care support; and transportation and material moving), ESI coverage increased by 6.8 percent, alongside non-ESI coverage that increased by 71.1 percent (e.g., Medicaid, marketplace coverage).

       

      Conclusion

      The ACA increased coverage substantially for workers, without creating an appreciable negative impact on ESI or employment.

      About the Urban Institute

      The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health Policy Center for more information specific to its staff and its recent research.

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      The Urban Institute looks at the benefits of Medicaid expansion in the 32 states that have expanded the program compared to the 19 states that have not.

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      Changes in Health Insurance Coverage 2013-2016

      Across all demographic groups, researchers recorded the largest coverage gains for people with incomes below 138 percent of the federal poverty level.

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      Recent Evidence on the ACA and Employment

      An Urban Institute report finds that the Affordable Care Act has had little to no adverse effects on employment through 2016, while increasing health insurance coverage for 20 million Americans.

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