Just Released: ACA Premiums vs. ACHA Premiums Data
The Kaiser Family Foundation published comparisons by county level of what consumers would pay in health insurance premiums after tax credits in 2020 under the ACA vs. the new replacement plan, The American Health Care Act.
Maps included in this study estimate premiums by the county for enrollees at age 27, 40 or 60 and with annual incomes ranging from $20,000 to $100,000. In additional to premium and tax credit estimates, the map from KFF.org also shows the share of an individual’s income they would pay for health insurance premiums and the dollar and percentage difference in premiums under the ACA vs. ACHA.
According to the study, older individuals with lower incomes and are living in high-premium areas (Arizona, for example) receive less financial assistance under the AHCA. Therefore, older individuals would have higher starting premiums under the AHCA and would pay more. Because younger people with higher incomes, and living in low-cost areas would receive more financial assistance, they would have lower starting premiums on average and pay less on coverage.
Note: This analysis does not take into account changes the House made on March 20 that would potentially allow for larger tax credits under the AHCA for people over age 50; it is not yet clear whether and how those funds would be allocated to tax credits. The map also does not include cost-sharing assistance under the ACA that lowers deductibles and copayments for low-income marketplace enrollees. For example, in 2016, people making between 100 – 150% of poverty enrolled in a silver plan on healthcare.gov received cost-sharing assistance worth $1,440; those with incomes between 150 – 200% of poverty received $1,068 on average; and those with incomes between 200 – 250% of poverty received $144 on average.
Additionally, according to the KFF.org:
Most current Healthcare.gov enrollees have lower incomes:
- About 66% of have incomes at or below 250% of poverty (approximately $31,250 for a single individual in 2020), with the bulk (44% of all enrollees) having incomes at or below 150% of poverty (approximately $18,750 in 2020).
- About 36% of enrollees are under age 35, 37% are age 35 to 54, and 27% are 55 or older.
Both the ACA and the American Health Care Act include tax credits in their approach. However, the law and the proposal calculate credit amounts differently: the ACA takes family income, local cost of insurance, and age into account, while the replacement proposal bases tax credits only on age, with a phase out for individuals with incomes above $75,000. Click here to check out the interactive map and review the proposed premiums for your county in 2020.