ACA Contributed to Increase in Personal Income, Consumer Spending
The Affordable Care Act contributed to slight increases in personal income and consumer spending in January, according to a report released Monday by the U.S. Department of Commerce, The Hill's "Healthwatch" reports.
According to "Healthwatch," the report is based on information provided by the federal government and the health insurance exchanges established under the ACA (Easley, "Healthwatch," The Hill, 3/3).
According to the report from DOC's Bureau of Economic Analysis, the ACA is credited with boosting personal income and consumer spending primarily because of how the law affects government benefits to U.S. residents.
Specifically, the report found that personal income increased in January by 0.3%, or about $23.7 billion, compared with a decrease of $15 billion in December 2013. The report noted that the increase resulted primarily from $19.2 billion in expanded Medicaid benefits and another $14.7 billion in ACA-related premium subsidies and tax credits. The ACA also helped boost consumer spending by about $48.1 billion, or roughly 0.4%, in January (BEA release, 3/3).
Overall, the increased demand for health services accounted for an additional $29 billion in the month's spending, according to BEA ("Healthwatch," The Hill, 3/3).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.