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Newsletter Article


Replacing the ACA's Tax Credits with Premium Support

financial burden

The Affordable Care Act’s health insurance tax credits limit premium contributions made by marketplace enrollees to a percentage of their income. Critics of the law have advanced the idea of “premium support,” which would instead give enrollees a fixed subsidy—regardless of their premium costs. In an analysis for The Commonwealth Fund Blog, Evan Saltzman of the University of Pennsylvania’s Wharton School and Christine Eibner of RAND demonstrate how premium-support models could place financial burdens on low-income and older individuals.

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