The Affordable Care Act, or ACA, is in a “death spiral,” according to a new study by a Massachusetts health insurance company.
The study, which was released Thursday by the consulting firm Avalere Health, suggests that the ACA could become the single biggest reason why more than 50 million Americans will lose their health insurance by 2022, and that the uninsured could account for a quarter of the nation’s population by 2026.
In its analysis, Avalere analyzed data from a large number of states that have chosen to adopt their own individual market insurance plans under the ACA.
It concluded that the individual market has been a boon to the health care system in Massachusetts.
The Massachusetts study found that Massachusetts is now home to two of the most successful markets for health insurance: one for individuals and one for small businesses.
Avalere found that the marketplace in Massachusetts has provided coverage to a large share of its residents and its uninsured population, while the marketplace for businesses has been less successful, with only a modest share of employees covered.
In the private market, Avalire found that between January and March of 2020, the average premium for a family of four in Massachusetts was $7,846, while it was $11,946 for a single adult.
By contrast, Avalke found that in the marketplace, premiums were $5,000 less in the private sector, and $12,000 more in the public market.
While Avalere’s analysis suggests that more than half of the insured are currently in the individual insurance market, the analysis does not provide a breakdown of how many people are in the state’s individual market and what they are purchasing.
Avaliere’s research was commissioned by the Massachusetts Department of Insurance.