Economic Effects of Health Care Reform on Virginia

This study estimates the impact of the 2010 health care reform law (the Patient Protection and Affordable Care Act/Health Care and Education Reconciliation Act) on Virginia’s economy. Health care reform is a complex and multifaceted law that was enacted with the joint goals of improving health insurance coverage for U.S. residents, decreasing the costs of health care, and improving overall health care delivery and quality. Although it was enacted for these purposes, the law also involves large changes in tax policy and government and private expenditures that can be expected to have significant direct and indirect economic effects. The study uses an industry-standard regional economic impact tool, REMI PI+ (Regional Economic Models, Inc. Policy Insight Plus), and data from the Congressional Budget Office, Joint Committee on Taxation, Virginia Department of Medical Assistance and other sources to estimate these effects. Results indicate that health care reform has positive employment effects for Virginia.