Premium Affordability, Competition, and Choice in the Health Insurance Marketplace, 2014. I. The Impact of Advanced Premium Tax Credits on Consumer Share of Premiums


Section I Highlights

Marketplace Plan Selection Choices and Premiums:

  • Individuals who selected Marketplace plans with tax credits through the FFM have a post-tax credit premium that is 76 percent less than the full premium amount, on average, as a result of premium tax credits.
  • 69 percent of individuals who selected Marketplace plans with tax credits in the FFM had premiums of $100 or less after tax credits—46 percent had premiums of $50 or less after tax credits.
  • Individuals choosing silver plans in the Federally-facilitated Marketplace (FFM) tended to select lower premium plans—65 percent chose the lowest or second-lowest cost silver plan.

During the initial open enrollment period more than 5.4 million people selected a Marketplace plan through the Federally-facilitated Marketplace (FFM). This section utilizes data on these individuals and their plan selections in the 36 FFM states to assess the impact of tax credits on consumers’ premiums. Comparable data for SBM states are not available. In the FFM, 87 percent of the individuals who selected a Marketplace plan during the initial open  enrollment period selected a plan with tax credits.8

8  This estimate is based on FFM plan selections through 5/12/2014. Data presented in the Marketplace Summary Enrollment Report is based on plan selections through 4/19/2014. For more information, the Marketplace Summary Enrollment Report can be accessed at:

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