Liberty Street Economics

« What Drives Forecaster Disagreement about Monetary Policy? | Main | A Closer Look at the Federal Reserve's Securities Lending Program »

August 16, 2016

Just Released: Firms Assess the Effects of the Affordable Care Act



The Federal Reserve Bank of New York this morning released the results of its August 2016 business surveys, including the supplemental survey report on health coverage costs and the effects of the Affordable Care Act (ACA) on firms in the region. Health care costs increased 8.5 percent this year and are expected to rise by 10 percent in 2017, based on the median responses of surveyed businesses. Among the more widely mentioned factors that firms said were contributing to higher costs were increased premiums from insurance providers, higher costs for prescription drugs, the ACA, and an aging workforce.

About 60 percent of respondents to the surveys said they are making at least some changes to their health care plans in response to the ACA. The most frequently cited adjustments were raising deductibles, boosting co-pays, and increasing out-of-pocket maximums. A majority of those surveyed, however, maintained that they are not changing the range of services covered nor the size and breadth of the health care network for their health care plans.

Fewer than one in five businesses in our surveys said they are reducing the number of workers in response to the ACA. Firms were also asked if they are adjusting their mix of full-time and part-time workers; the vast majority said they are not. A minority of firms reported that they are doing at least one of the following because of the ACA: increasing the proportion of workers who are part-time, reducing compensation, and reducing other benefits. The report compares many of these findings to similar questions asked in earlier surveys.


Disclaimer
The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.





Bram_jasonJason Bram is an officer in the Federal Reserve Bank of New York’s Research and Statistics Group.


Deitz_richardRichard Deitz is an assistant vice president in the Group.




How to cite this blog post:
Jason Bram and Richard Deitz, "Just Released: Firms Assess the Effects of the Affordable Care Act," Federal Reserve Bank of New York Liberty Street Economics (blog), August 16, 2016, http://libertystreeteconomics.newyorkfed.org/2016/08/just-released-firms-assess-the-effects-of-the-affordable-care-act.html.
Posted by Blog Author at 08:35:00 AM in Regional Analysis
Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.

About the Blog
Liberty Street Economics features insight and analysis from economists working at the intersection of research and policy. The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Donald Morgan.

The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.


Economic Research Tracker

Liberty Street Economics is now available on the iPhone® and iPad® and can be customized by economic research topic or economist.


Useful Links
Comment Guidelines
We encourage your comments and queries on our posts and will publish them (below the post) subject to the following guidelines:
Please be brief: Comments are limited to 1500 characters.
Please be quick: Comments submitted after COB on Friday will not be published until Monday morning.
Please be aware: Comments submitted shortly before or during the FOMC blackout may not be published until after the blackout.
Please be on-topic and patient: Comments are moderated and will not appear until they have been reviewed to ensure that they are substantive and clearly related to the topic of the post. We reserve the right not to post any comment, and will not post comments that are abusive, harassing, obscene, or commercial in nature. No notice will be given regarding whether a submission will or will not be posted.‎
Disclosure Policy
The LSE editors ask authors submitting a post to the blog to confirm that they have no conflicts of interest as defined by the American Economic Association in its Disclosure Policy. If an author has sources of financial support or other interests that could be perceived as influencing the research presented in the post, we disclose that fact in a statement prepared by the author and appended to the author information at the end of the post. If the author has no such interests to disclose, no statement is provided. Note, however, that we do indicate in all cases if a data vendor or other party has a right to review a post.
Archives