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A5 U.S. NEWS A7
Thursday 31 March 2016
Thursday 31 March 2016

US Financial Front:

Report details costs, challenges of ACA’s newly insured

The HealthCare.gov website, where people can buy health insurance, is displayed on a laptop conclusions about the 2015 than for customers
screen in Washington. The Blue Cross Blue Shield Association said in a report released Wednes- newly insured based on with employer-based cov-
day, March 30, 2016, health insurers gained a sicker, more expensive patient population through what amounts to a lim- erage.
the Affordable Care Act’s coverage expansion. Its report offers an early glimpse at customers who ited look at a still-evolving Health insurers expected
have gained coverage in the past couple years. health care market. But the their initial wave of patients
numbers show how gain- from the ACA expansion
(AP Photo/Andrew Harnik) ing coverage is only part of to generate higher-than-
a long journey toward the normal claims because
TOM MURPHY Blue Cross Blue Shield As- said in a report released ACA’s other key goals of some of the uninsured had
AP Business Writer sociation, which represents improving health and slow- not used the health care
Health insurers gained a the most common brand of Wednesday. They also vis- ing cost growth. system for years and were
sicker, more expensive pa- insurance. “The coverage is the first waiting for coverage to
tient population after the Newer customers had ited the emergency room step,” said Linda Blumberg, help pay for needed care.
Affordable Care Act ex- higher rates of diabetes, a health insurance expert Companies also have
panded coverage in 2014, depression and high blood much more frequently than at Urban Institute, a non- struggled initially to add
according to an early look pressure, among other profit research organiza- younger consumers who
at medical claims from the conditions, the association people who had private, tion. “Figuring out how to don’t consume as much
help these folks use medi- health care, and they
individual coverage before cal care in the most ef- have been hurt by expen-
fective ways is a real chal- sive patients who sign up
the law expanded. lenge.” outside regular enrollment
The association compiled windows.
Researchers caution its report from dozens of in- “If you lower the price of
surers that sell Blue-brand- anything, people are go-
against drawing broad ed coverage in 46 states ing to use it more,” said
and Washington, D.C. It Blumberg, the Urban In-
compared claims from stitute expert who did not
newer customers with two work on the Blue Cross Blue
populations: people who Shield report.
bought coverage before She added that it is too
the law expanded and early to draw firm conclu-
those who have insurance sions about trends in use,
through an employer. and the association’s re-
Medical costs for new cus- port doesn’t include insur-
tomers were, on average, ers that don’t sell Blue Cross
19 percent higher in 2014 Blue Shield plans.q
and 22 percent higher in

Survey: Solid hiring continues despite weak US growth

C. S. RUGABER despite worries that growth in February, while unem- The Federal Reserve Bank serious trouble,” Paul Ash-
AP Economics Writer slowed in the first three ployment stayed 4.9 per- of Atlanta now predicts the worth, chief U.S. economist
WASHINGTON (AP) — U.S. months of the year, held cent. economy will expand at at Capital Economics, said.
companies added 200,000 back by weak overseas Yet some other economic just a 0.6 percent annual Mark Zandi, chief econo-
jobs in March, buoyed by economies and cautious data has come in weaker rate. mist at Moody’s Analytics,
strong gains in construc- consumers. than many analysts ex- That would be sharply be- which compiles ADP fig-
tion, retail and shipping, The ADP report comes out pected, sparking concerns low the fourth quarter’s al- ures, said that GDP will like-
according to a private sur- two days before the U.S. about growth. Americans ready-sluggish 1.4 percent ly be revised higher in the
vey. government’s official jobs barely increased their growth rate. coming months.
Payroll processor ADP said report. The ADP numbers spending in February, the With the economy sput- “If you are trying to under-
Wednesday that financial cover only private business- government said earlier this tering, analysts worry that stand how this economy is
services firms also posted es and often diverge from week, and spent much less slower hiring will soon fol- doing, I wouldn’t pay at-
solid gains, while manufac- the official figures. in January than previously low. The ADP numbers, tention to the GDP num-
turing employment barely Economists surveyed by the estimated. however, indicate that job bers,” Zandi said on a con-
rose. data firm FactSet predict Those figures caused many gains remain solid. ference call.
The figures point to an that American employ- economists to sharply re- “The resilience of the la- “I would pay attention to
economy that is continuing ers added 200,000 jobs in duce their forecasts for bor market suggests that the jobs numbers. We can
to generate steady hiring, March, down from 242,000 growth in the first quarter. the economy is not in any count jobs.”q