• by bcarlson@marketresearch.com
  • September 30 2014
  • ACA
  • IVD


PPACA One year Anniversary and the IVD Segment

PPACA One year Anniversary and the IVD Segment

Today marks the one year anniversary of when the Patient Protection and Affordable Care Act (PPACA) Health Insurance Exchange Marketplaces opened. Kalorama has analyzed the impact of the ACA on the in vitro diagnostics industry in the past.  Let’s take a look at where things stand with respect to the Act and the IVD segment.

Improving economic conditions, the PPACA coverage expansions, and the aging of the population should drive faster projected growth in health spending in 2014 and beyond. The PPACA will direct roughly $20 billion over 10 years to disease prevention, health maintenance, and wellness, which should expand the market for in-vitro diagnostic tests, as well as for imaging studies for screening. Though the Act will impose challenges on the IVD segment, including cost containment initiatives and reimbursement cuts, the early results are positive.

 

Expected growth in health expenditures for 2014 is 5.6 percent, as 9 million Americans are projected to gain health insurance coverage, predominantly through Medicaid or the Health Insurance Marketplaces, according to the Centers for Medicare & Medicaid Services (CMS). The number of uninsured people is expected to decline from 45 million people in 2012 to 23 million people by 2023.

 

The overall objective of the PPACA is to expand access to health care coverage for most U.S. citizens and legal residents by requiring individuals to have coverage and employers to either provide coverage or pay a penalty that would support coverage from a pool of public funds.  The PPACA affects virtually every aspect of health care, but will have different impacts on different healthcare segments.  The impact on the IVD segment is discussed in our report, The Impact of Healthcare Reform (PPACA) on the U.S. IVD Industry.

 

According to the CMS, average annual projected growth in health expenditures of 6.0 percent per year is projected for 2015 through 2023, largely as a result of the continued implementation of the PPACA coverage expansions, faster projected economic growth, and the aging of the population.  This is in keeping with our forecast that the law in a broad sense will have a positive result in terms of net sales in the IVD segment.

 

Information on The Impact of Healthcare Reform (PPACA) on the U.S. IVD Industry can be found at KI:  http://www.kaloramainformation.com/Impact-Healthcare-Reform-7728373/