The Affordable Care Act (ACA)

The Affordable Care Act (ACA) a.k.a. ObamaCare, May Not Be Affordable For Many (and this may impact first-time homebuyers)

The Ohio Department of Insurance commissioned a study from Milliman, Inc., a global actuarial firm, to ascertain the impact of ObamaCare on Ohio and its residents. Click here to read the entire Ohio document.    Note: Stewart, as does most of the title industry, uses Milliman as an outside expert reviewing the actuarial soundness of reserves.    

Milliman’s findings on the impact of the ACA on Ohio are sobering. (see Figure 4-6 on page 36 of the report)  — direct quotes —

  • Individual health care rates are projected to increase 55 to 85 percent
  • Small group health care rates are projected to increase 5 to 15 percent
  • Large group rates are projected to increase 0 to 5 percent

Everyone, however,  will not be equally impacted.  The report notes the following:   — direct quotes —

  • In the individual market, a healthy young male (with benefit coverage at the market average actuarial value pre and post-ACA) may experience a rate increase of between 90% and 130%. However, a 60 year old with chronic health conditions may experience a significant premium decrease.
  • In the ESI-small group market, rating changes may result in a premium increase of 150% or a premium decrease of nearly 40% for groups at opposite ends of the current rating structure.

Even if there is adequate funding, the implementation of the Act will place an increased drag on the economy as most individuals will have greater expenses and less discretionary spending.  And that will not be good for the economy.  And if the burden as noted above is placed on the healthy young, then that in turn will impact first-time homebuyer sales and ultimately homeownership rates in a negative manner.  Assuming these finding hold across the country, then the net result will be more renters and even a greater trend towards rising residential rental rates. 


  1. Bert Stevens

    I enjoyed your presentation this morning as I have all of your presentations. The one question that I have always wanted to ask but I am afraid that there is no good or workable answer to the question. The question is:

    How do we get the 51% that do not pay taxes to understand what is really going on with our economy. I am not saying that they should believe one opinion over another but if they would just be willing to read and/or listen to qualified people explain how one projects affects others and the economy. I respect the opinions of others as long as they are learned opinions and not just spewing the retorical crap from one politician or another. I guess I am venting more than asking.

    I am glad to finally subscribe to your blog. I hope you keep doing what you are doing in the hopes that more and more people will hear what you have to say.

    My quote for today:
    “The man who coined the phrase “Money can’t buy happiness”, never bought himself a good fly rod!”

    ~by Reg Baird, from his video Labrador Trout~

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