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Urban Institute study breaks down ACA costs by employer size

By , - Last modified: October 9, 2012 at 12:11 PM

A study released by the Urban Institute that examines impacts of the 2010 federal health care overhaul points to cost increases per insured person only happening for a group of employers as a whole composed of mid-size businesses.

The classification defines these employers as having 101 to 1,000 employees, and overall spending by this group of businesses, which takes into account expanded enrollment, would go up 9.5 percent, according to statistics in the study based on if the law's provisions were fully in effect this year.

The cost per person insured would be "virtually unchanged" for businesses with more than 1,000 employees, and the group's total spending would go up 4.3 percent on coverage increases due largely to higher employee enrollment rates, according to the institute's study.

Businesses with 100 or fewer employees and offering coverage would see the cost per person lowered by 7.3 percent, and spending by the group as a whole would decline by 1.4 percent, according to the study.

The findings consider the Patient Protection and Affordable Care Act's effects on coverage, premiums and applicable penalties or tax credits, according to the study.

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