The Effect of Shopping and Premium Tax Credits on the Affordability of Marketplace Coverage


In this brief, we examine how the combination of tax credits and the opportunity to shop around for coverage through the Marketplace would protect consumers in a hypothetical scenario with much higher premium increases in the Marketplace than occurred last year. Our analyses (and impacts of hypothetical rate increases) are restricted to consumers who purchase insurance through the Marketplaces, with a particular focus on the majority of these consumers who receive APTC. Focusing on a hypothetical scenario of a 25 percent increase in premiums for all Marketplace qualified health plans (QHPs) in states from 2016 to 2017, we show that the overwhelming majority of Marketplace consumers would be able to purchase coverage for less than $75 per month, just as they could in 2016.


"APTCMarketplace.pdf" (pdf, 290.36Kb)

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