WSJ review of Obamacare

The Wall Street Journal posted an essay reviewing the impact of Obamacare. As one might expect, Obamacare is neither an unqualified success nor an unmitigated disaster (much to the chagrin of many political commentators). Overall, it seems that the legislation achieved some of its goals to a limited extent.

Significantly, 10 million Americans who were previously uninsured now have coverage. Unfortunately, most of people received care through the expansion of Medicaid, a program estimated to provide a benefit equivalent to about 20%-40% of its cost. The growth in healthcare spending slowed down for a few years, but it looks like it is picking back up again (perhaps attributable to the economy). So, the short-term results were mixed in many areas. What does seem clear, however, is that Americans became far more familiar with concepts such as deductibles and network coverage.

Consumers who shopped on the health insurance exchanges likely also have a better understanding of the trade-offs between deductibles, network breadth, and premiums. It's possible that this consumer exposure to the trade-offs and the underlying cost of health care might actually have a substantial impact on the industry in the long-term.