Supreme Court Upholds the Affordable Care Act: What the Experts Are Saying

June 28, 2012

Today's Supreme Court decision to uphold most of the Patient Protection and Affordable Care Act (ACA)—and most notably, the individual mandate that all Americans purchase health insurance or pay a financial penalty—is likely the most significant health care-related ruling in U.S. history.

When President Barack Obama signed the bill into law in March 2010, the American health care system seemed destined for sweeping reform. Yet constitutional challenges soon surfaced, with two such cases climbing the judicial hierarchy and landing in the Supreme Court, threatening the President's signature legislative achievement.

Now that key provisions of the president's reform have survived the process and a mixed ruling on Medicaid expansion has prevailed, what lies ahead for health care in America? RAND experts sound off in the wake of the Court's momentous decision.

Future of Medicaid Still Uncertain

Christine Eibner

With most of the key provisions of the Affordable Care Act upheld, we expect close to 30 million Americans to gain health insurance coverage. Yet the part of the ruling dealing with Medicaid is significant. We don't know how many states will respond, and it will take thoughtful, quantitative analysis to gain insight into this. Our next challenge will be to analyze the effects of states opting out of Medicaid expansion, and how this might influence insurance coverage, exchange enrollment, and federal spending on subsidies.

Christine Eibner, economist

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Implementation Will Determine ACA's Success or Failure

Arthur Kellermann

The focus now returns to implementation. A key issue for implementation—and ultimately the success or failure of the ACA—is whether or not our health care system can successfully realign to produce higher value at lower cost. RAND has generated high-impact research on this question for 40 years, and we are actively engaged in a wide range of projects of immediate relevance to the issue. The stakes are so high—millions of lives and literally trillions of dollars—that failure is not an option.

Arthur Kellermann, Paul O'Neill Alcoa chair in policy analysis

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Program Design Key to Achieving ACA's Goals

Cheryl Damberg

As federal and state policymakers move to implement the ACA, there are a plethora of decisions that must be made about how to structure the program elements. These decisions and the evolution of health care reform can be improved by the independent, objective analyses that RAND can provide. We can help identify best approaches to program design and implementation, and how to assess the impact of the ACA in achieving better quality, lower costs, and improved health. RAND's work in the area of pay-for-performance and value-based purchasing is one example of how RAND is helping policymakers design incentive programs to improve quality and lower costs.

Cheryl L. Damberg, senior policy researcher

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With Ruling Settled, Reform Can Begin

Peter Hussey

The ACA contains a myriad of provisions to reduce health care costs and improve quality independent of the mandate. For example, reforms have advanced primary care in ‘patient-centered medical homes’ and ‘bundled payments’ for common episodes of care have been taking root, but could potentially accelerate in the private sector with federal funding confirmed. Now that the uncertainty of the Supreme Court decision has been lifted, transformation of health care delivery can move rapidly ahead.

Peter Hussey, policy researcher

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Supreme Court Not the Only Group Whose Decisions Matter

Carter C. Price

The passage of the law and this ruling are the start of health care reform, not the end. There are now many decisions to be made. State governments need to make preparations for the insurance exchanges and the expansion of Medicaid. Health insurance companies must ensure their offerings are in compliance with the law. Businesses should assess the impact of the new options on their employees to determine if they should continue to offer health insurance. Health care providers need to assess whether they have the capacity to provide care to as many as 30 million newly insured Americans. Finally, individuals should look at the new options that will be open to them in 2014.

Carter C. Price, mathematician

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Research Brief

Infographic: How Pennsylvania May Fare Under the ACA — May 15, 2013

Pennsylvania capitol buildingThis infographic presents findings from a RAND analysis of the economic and other effects of Medicaid expansion on the commonwealth of Pennsylvania.

Blog

Governors Missing the Point on Medicaid — Apr 29, 2013

6170068425_b192a9d867_bWhile a governor or legislator may disagree with Medicaid expansion for philosophical reasons, the claims that the expansion will be a burden on states' economies seem misguided given the full range of projected economic impacts on the states, writes Carter C. Price.

Blog

Helping Obama—and Other Americans—Weigh Which Health Insurance Exchange to Pick — Apr 1, 2013

a health insurance claim form and a silver penMultistate plans are most likely to appeal to out-of-state students, interstate migrants, out-of-state workers, seasonal movers (e.g., “snowbirds”), and similar groups that require improved access to health care across state lines.

Report

The Economic Impact of Medicaid Expansion on Pennsylvania — Mar 28, 2013

Pennsylvania state flagIf Pennsylvania opts into Medicaid expansion under the Affordable Care Act, more residents would have health coverage and the state would enjoy a positive economic effect. However, benefits would have a long-term cost, with uneven regional results.

Report

Multistate Health Plans in the ACA's State Insurance Exchanges — Mar 20, 2013

blue and pink pillsThe ACA requires the government to work with insurance issuers to establish at least two multistate plans (MSPs) in each state's health insurance exchange. MSPs may be especially attractive to those interested in issuers that operate in multiple states, such as out-of-state students or temporary workers.

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