The Affordable Health Care Act (ACA) is expected to save the federal government $2.7tn over the next 10 years by providing healthcare coverage for millions of people, according to a new report from the Brookings Institution.
The report estimates that under the law, about 3 million people will receive a monthly subsidy, which will amount to more than $3,800 per household.
By contrast, a standard household would receive $1,400 a month in federal subsidies.
The ACA, the health care overhaul passed in 2010, has also helped to reduce health care costs by increasing access to affordable insurance, according the Brookings report.
It has also improved the quality of care in many areas, including by increasing preventive care and expanding Medicaid coverage.
As Vox’s Ezra Klein points out, the Congressional Budget Office has estimated that the ACA will save $1.6 trillion in 2025, which is equivalent to the entire cost of the entire health care system.
In the CBO’s analysis, the ACA’s benefits to health care are estimated to total $1 trillion in 2024, which amounts to the savings from the law.
“We have a lot of room for improvement,” Robert Blendon, senior director of the CBO, told Vox.
“It’s not perfect, but it’s pretty good.”
In addition to saving money, the CBO says the ACA is likely to be a game-changer for other aspects of the US economy.
“By creating more opportunities for young people to get health insurance, the Affordable Care Exchange will have a significant impact on the number of young adults entering the workforce,” the report said.
Additionally, the report found that the law will help improve the health and well-being of Americans.
“As people are less likely to have to worry about being able to afford health insurance or pay their bills, it will make health care a lot more affordable,” Blendon told Vox, “and that will increase demand for health care and help the economy grow.”
More on Vox: The best healthcare apps for the iPhone and AndroidThe health insurance industry’s responseThe health care exchange’s impactOn the campaign trail and on Twitter, President Donald Trump and his administration have attacked the ACA and its expansion of healthcare coverage.
They have repeatedly argued that the expansion of coverage will increase the cost of health care for millions, especially the poor and people with pre-existing conditions.
The health care industry has repeatedly said that the health law is helping reduce the costs of health insurance for many consumers.
But a report by the Brookings Institute released Monday shows that the cost savings are mostly due to an expansion of the Medicaid program that covers the poor.
The Medicaid expansion, which has been expanded since 2014, has helped people get insurance coverage and reduce the cost to providers.
As Vox’s David Roberts points out , the Medicaid expansion will also help the cost-conscious, as people who get Medicaid will be able to buy health insurance on the Obamacare exchange and pay lower premiums.
The Brookings report also estimates that the Medicaid increase will save an additional $2 trillion over the 10 years from 2019 through 2026.
But there’s still a long way to go.
The ACA will not come to all Americans in 2019, according an analysis by the Kaiser Family Foundation, and only about 13 million people would qualify for subsidies through the law by 2026, which the Kaiser report notes could increase the federal deficit by $2tn over 10 decades.