New Analysis: Senate Tax Bill Will Raise Premiums for Many Who Buy Their Own Coverage; Wealthiest to Benefit Most from Offsetting Tax Cuts
<p>Congressional Republicans are looking to the Affordable Care Act (ACA) to help pay for their $1.5 trillion tax bill. As passed by the Senate Finance Committee, the legislation includes a repeal of the ACA’s individual mandate to have health insurance. In a new analysis, the Commonwealth Fund’s Sara Collins, Munira Gunja, and Herman Bhupal look at how repeal could affect premiums and whether increases will be offset by the bill’s tax cuts. </p><p>Using data on 2018 marketplace premiums in the 39 states using the federal marketplace, the researchers project what increases in premiums resulting from the mandate repeal would mean for the 7 million Americans who buy their own, unsubsidized coverage. They then compare these average increases to projected tax cuts in the Senate tax bill for different age and income groups. </p>
<p>The authors find that only some Americans who are expected to experience premium hikes will have those increases offset by tax cuts. People with higher incomes will experience the most benefit, while older adults with moderate incomes will see their costs rise the most. </p>