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Summary of Dr. Jonathan 
Gruber’s Health Insurance 
Exchange Modeling 
Jeff Bontrager 
Colorado Health Institute 
Marketing, Enrollment and Outreach 
Workgroup (MEOW) Meeting 
September 21, 2011 
bontragerj@coloradohealthinstitute.org
Background and caveats 
• This presentation was given by Dr. Jonathan 
Gruber from MIT to the Colorado Health 
Benefit Exchange Board on Sept 16, 2011 
• Data source is the 2008-09 Colorado 
Household Survey and the Gruber 
Microsimulation Model 
• All numbers are estimates, limited to ages 0-64 
• The final report, including narrative, methods 
and assumptions, is planned for release within 
the next month
Table 1: Colorado Enrollments 
Insurance Category 2011 % of population 
Employer-Sponsored Insurance (ESI) 2,650,000 62.3% 
Small Firm ESI (1-50 employees) 570,000 13.4% 
Large Group ESI 2,080,000 49.0% 
Individual Market Insurance 310,000 7.2% 
Public Insurance 440,000 10.3% 
Uninsured 850,000 20.1%
Table 2: Estimate of ACA Effect, 2016 
No Reform With ACA ACA Impact 
ESI 2,630,000 2,600,000 -30,000 
Small Firm ESI (1-50 employees) 560,000 540,000 -20,000 
Other ESI 2,070,000 2,060,000 -10,000 
Unreformed Non-group 340,000 60,000 -280,000 
Reformed Non-group 0 620,000 620,000 
Tax Credit Recipients 0 470,000 470,000 
Non-Recipients 0 150,000 150,000 
Public Insurance 550,000 710,000 160,000 
Uninsured 860,000 400,000 -460,000 
Total 4,390,000 4,390,000
Table 3: Summary of Previously 
Uninsured, 2016 Post-ACA 
Adult 
females 19- 
44 
Adult 
females 45- 
64 
Adult males 
19-44 
Adult males 
45-64 
Children 
Ages 0-18 
Medicaid/C 
HP+ 
39,000 21,000 41,000 11,000 19,000 
Reformed or 
Unreformed 
Non-group 
30,000 41,000 72,000 40,000 29,000 
Employer 
Sponsored 
Insurance 
38,000 12,000 53,000 17,000 36,000 
Total Newly 
Insured 
111,000 74,000 170,000 68,000 85,000 
Remaining 
Uninsured 
90,000 43,000 88,000 49,000 84,000 
Baseline 
Uninsured 
202,000 117,000 259,000 116,000 170,000
Table 4: Movements due to ACA: 2016 
Ex-ante 
ESI Nongroup Public Uninsured Total 
ESI 2,440,000 - - 160,000 2,600,000 
Ex-Post Reformed or 
Unreformed 
Nongroup 
130,000 330,000 0 220,000 680,000 
Public 30,000 - 550,000 130,000 710,000 
Uninsured 40,000 - 0 350,000 400,000 
Total 2,630,000 330,000 550,000 860,000 4,390,000 
Note: “-” indicates a movement that is less than 10,000 but greater than 0.
Table 5: Reformed Market 
Participation and Tax Credit Uptake: 
2016 
# of individuals Cumulative # of individuals 
Tax credit recipients in 
individual reformed market 
470,000 - 
Employees (& dependents) 
of firms receiving tax credit 
120,000 590,000 
Non-tax credit recipients in 
individual reformed market 
150,000 740,000 
Employees (& dependents) 
of non-tax credit firms with 
<50 employees 
420,000 1,160,000
Table 6: Premiums and Actuarial 
Values for those Remaining on 
Nongroup: 2016 
Ex-Ante Ex-Post 
(No Subsidies) 
Ex-Post 
(With Subsidies) 
Average Nongroup 
Premium 
$5,580 $6,610 $4,060 
Average Nongroup 
Actuarial Value 
.608 .676 .675 
Note: The changes in this table do not reflect removal of pre-existing 
conclusions restrictions, reuse of any funds that fund the high risk pool (which is 
now folded into the reformed market), or reinsurance/risk adjustment/risk 
corridor mechanisms.
Figure 19: Nongroup Premium Changes (including tax 
credits) for those Remaining on Nongroup: 2016 
34% 
11% 
5% 0% 
6% 7% 
14% 
18% 
5% 
<-50% 
-50% to -25% 
-25% to -10% 
-10% to 0% 
0% 
0% to 10% 
10% to 25% 
25% to 50% 
>50%
Table 7: Household Budget Effects: 
2016 
Status Quo (in 
billions) 
After ACA (in 
billions) 
ACA Effect (in 
billions) 
Per Household 
Effect 
Wages $162.1 $162.4 $0.3 $130 
Exchange Credits $0.0 $1.0 $1.0 $440 
Public Insurance $0.0 $0.6 $0.6 $270 
Additional 
Benefits 
$1.9 $840 
ESI Contribution $4.0 $3.8 -$0.2 -$90 
Non-group 
Premium 
$1.8 $1.8 $0.0 $0 
OOP Spending $2.6 $2.4 -$0.2 -$90 
Taxes $37.0 $37.4 $0.4 $180 
Additional Costs $0.0 $0 
Net Effects $1.9 $840
$1,500*
$1,150*

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Gruber Presentation

  • 1. Summary of Dr. Jonathan Gruber’s Health Insurance Exchange Modeling Jeff Bontrager Colorado Health Institute Marketing, Enrollment and Outreach Workgroup (MEOW) Meeting September 21, 2011 bontragerj@coloradohealthinstitute.org
  • 2. Background and caveats • This presentation was given by Dr. Jonathan Gruber from MIT to the Colorado Health Benefit Exchange Board on Sept 16, 2011 • Data source is the 2008-09 Colorado Household Survey and the Gruber Microsimulation Model • All numbers are estimates, limited to ages 0-64 • The final report, including narrative, methods and assumptions, is planned for release within the next month
  • 3. Table 1: Colorado Enrollments Insurance Category 2011 % of population Employer-Sponsored Insurance (ESI) 2,650,000 62.3% Small Firm ESI (1-50 employees) 570,000 13.4% Large Group ESI 2,080,000 49.0% Individual Market Insurance 310,000 7.2% Public Insurance 440,000 10.3% Uninsured 850,000 20.1%
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Table 2: Estimate of ACA Effect, 2016 No Reform With ACA ACA Impact ESI 2,630,000 2,600,000 -30,000 Small Firm ESI (1-50 employees) 560,000 540,000 -20,000 Other ESI 2,070,000 2,060,000 -10,000 Unreformed Non-group 340,000 60,000 -280,000 Reformed Non-group 0 620,000 620,000 Tax Credit Recipients 0 470,000 470,000 Non-Recipients 0 150,000 150,000 Public Insurance 550,000 710,000 160,000 Uninsured 860,000 400,000 -460,000 Total 4,390,000 4,390,000
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Table 3: Summary of Previously Uninsured, 2016 Post-ACA Adult females 19- 44 Adult females 45- 64 Adult males 19-44 Adult males 45-64 Children Ages 0-18 Medicaid/C HP+ 39,000 21,000 41,000 11,000 19,000 Reformed or Unreformed Non-group 30,000 41,000 72,000 40,000 29,000 Employer Sponsored Insurance 38,000 12,000 53,000 17,000 36,000 Total Newly Insured 111,000 74,000 170,000 68,000 85,000 Remaining Uninsured 90,000 43,000 88,000 49,000 84,000 Baseline Uninsured 202,000 117,000 259,000 116,000 170,000
  • 20. Table 4: Movements due to ACA: 2016 Ex-ante ESI Nongroup Public Uninsured Total ESI 2,440,000 - - 160,000 2,600,000 Ex-Post Reformed or Unreformed Nongroup 130,000 330,000 0 220,000 680,000 Public 30,000 - 550,000 130,000 710,000 Uninsured 40,000 - 0 350,000 400,000 Total 2,630,000 330,000 550,000 860,000 4,390,000 Note: “-” indicates a movement that is less than 10,000 but greater than 0.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Table 5: Reformed Market Participation and Tax Credit Uptake: 2016 # of individuals Cumulative # of individuals Tax credit recipients in individual reformed market 470,000 - Employees (& dependents) of firms receiving tax credit 120,000 590,000 Non-tax credit recipients in individual reformed market 150,000 740,000 Employees (& dependents) of non-tax credit firms with <50 employees 420,000 1,160,000
  • 26. Table 6: Premiums and Actuarial Values for those Remaining on Nongroup: 2016 Ex-Ante Ex-Post (No Subsidies) Ex-Post (With Subsidies) Average Nongroup Premium $5,580 $6,610 $4,060 Average Nongroup Actuarial Value .608 .676 .675 Note: The changes in this table do not reflect removal of pre-existing conclusions restrictions, reuse of any funds that fund the high risk pool (which is now folded into the reformed market), or reinsurance/risk adjustment/risk corridor mechanisms.
  • 27. Figure 19: Nongroup Premium Changes (including tax credits) for those Remaining on Nongroup: 2016 34% 11% 5% 0% 6% 7% 14% 18% 5% <-50% -50% to -25% -25% to -10% -10% to 0% 0% 0% to 10% 10% to 25% 25% to 50% >50%
  • 28. Table 7: Household Budget Effects: 2016 Status Quo (in billions) After ACA (in billions) ACA Effect (in billions) Per Household Effect Wages $162.1 $162.4 $0.3 $130 Exchange Credits $0.0 $1.0 $1.0 $440 Public Insurance $0.0 $0.6 $0.6 $270 Additional Benefits $1.9 $840 ESI Contribution $4.0 $3.8 -$0.2 -$90 Non-group Premium $1.8 $1.8 $0.0 $0 OOP Spending $2.6 $2.4 -$0.2 -$90 Taxes $37.0 $37.4 $0.4 $180 Additional Costs $0.0 $0 Net Effects $1.9 $840
  • 30.