The ACA and Trends in Healthcare Utilization and Loss Ratios: An Index-Based Approach

Abstract

Using the U.S. Health insurance industry data, we create indices for healthcare utilization and loss ratios by insured sub-populations for 2006-2014 and link to the introduction of the ACA by setting 2010 as base year. The indices may be used to inform public policy and for general benchmarking. In general, index trends in utilization (and not in loss ratios) show no sharp changes of direction with the introduction of the ACA, but show continuation of trends already in place. Still, the trend patterns often differ substantially, depending upon the sub-population and/or utilization/loss measure under examination.