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The demand for health care workers post-ACA

  • Management and Policy Paper
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International Journal of Health Economics and Management Aims and scope Submit manuscript

Abstract

Concern abounds about whether the health care workforce is sufficient to meet changing demands spurred by the Affordable Care Act (ACA). We project that by 2022 the health care industry needs three to four million additional workers, forty percent of which is related to demand growth under the ACA. We project faster job growth in the ambulatory care sector, especially in home health care. Given the current profile, we expect that the future health care workforce will be increasingly female, young, racially/ethnically diverse, not US-born, at or below the poverty level and at a low level of educational attainment.

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Acknowledgments

This work was conducted with the support of the Joint Center for Political and Economic Studies. We acknowledge the support of the Health Systems Innovation Network, LLC for the use and adaptation of the ARCOLA model for this research.

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Correspondence to Bianca K. Frogner.

Technical Appendix

Technical Appendix

Modified assumptions of the ARCOLA model

Following is a brief discussion the model, and the updated assumptions and modifications we made for the purposes of this study. We assumed that the ACA will unfold as legislated and made the following adjustments to the ARCOLA model. First, we updated the model from the original plan characteristics defining the low, medium and high preferred provider organizations (PPOs) to reflect the likely “metallic” choices that are part of the ACA. Combining our knowledge of health insurance with the likely changes to the benefit design of the metallic plan choices, we made the following assumptions: (1) platinum plans would be equivalent to a high PPO option; (2) gold plans would map to a medium PPO option; (3) silver plans would map to a low PPO option; and (4) bronze plans would map to high-deductible health plans (HDHP). We also assumed premiums would increase by 4–8 % depending on the plan choice.

Exhibit 5 Crosswalk between the North American industrial classification system and claims codes

Second, we incorporated Medicaid expansion for states opting in for the expansion as of November, 2013. We used data from the Kaiser Family Foundation on benefit coverage and cost of acute-care Medicaid programs by state to simulate the expansion of the Medicaid population. Third, we factored in the health status of an individual (specifically for those with chronic conditions) assuming a person’s health status may predict which plan he or she chooses. To do this, we created a dummy variable to denote the presence of chronic illness. Since a sick person will likely drive premiums up, incorporating this variable into the model allowed for a more accurate adjustment to overall premiums and cost sharing.

After all adjustments were made, we then used claims data as well data from ehealthinsurance.com to estimate premiums offered and resulting take-up of insurance in the private health insurance market including the Medicare Advantage market, as well as estimate take-up of insurance under the Medicare Fee-for-Service sector. We then used a multi-payer insurance claims database to measure utilization of health services by type of insurance in order to develop demand projections within each health care sector.

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Frogner, B.K., Spetz, J., Parente, S.T. et al. The demand for health care workers post-ACA. Int J Health Econ Manag. 15, 139–151 (2015). https://doi.org/10.1007/s10754-015-9168-y

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