In this research report, RAND Corporation researchers assess the expected change in enrollment and premiums in the Patient Protection and Affordable Care Act–compliant individual market in federally facilitated marketplace (FFM) states if the U.S. Supreme Court decides to eliminate subsidies in FFM states.

The Effect of Eliminating the Affordable Care Act's Tax Credits in Federally Facilitated Marketplaces

Evan Saltzman, Christine Eibner

ResearchPublished Jan 8, 2015

In this research report, RAND Corporation researchers assess the expected change in enrollment and premiums in the Patient Protection and Affordable Care Act (ACA)–compliant individual market in federally facilitated marketplace (FFM) states if the U.S. Supreme Court decides to eliminate subsidies in FFM states. The analysis used the Comprehensive Assessment of Reform Efforts (COMPARE) microsimulation model, an economic model developed by RAND researchers, to assess the impact of proposed health reforms. The authors found that enrollment in the ACA–compliant individual market, including plans sold in the marketplaces and those sold outside of the marketplaces that comply with ACA regulations, would decline by 9.6 million, or 70 percent, in FFM states if subsidies were eliminated. They also found that unsubsidized premiums in the ACA–compliant individual market would increase 47 percent in FFM states. This corresponds to a $1,610 annual increase for a 40-year-old nonsmoker purchasing a silver plan.

Key Findings

Enrollment in the Patient Protection and Affordable Care Act (ACA)–Compliant Individual Market Would Decline Significantly in Federally Facilitated Marketplace (FFM) States

  • Individual-market enrollment would decline by an estimated 70 percent, or 9.6 million people.
  • This decline includes plans sold in the marketplaces and those sold outside of the marketplaces that comply with ACA regulations.

Unsubsidized Premiums in the ACA-Compliant Individual Market Would Increase 47 Percent in FFM States

  • This corresponds to a $1,610 annual increase for a 40-year-old nonsmoker purchasing a silver plan.

Topics

Document Details

  • Copyright: RAND Corporation
  • Availability: Web-Only
  • Year: 2015
  • Pages: 8
  • ISBN/EAN: 978-0-8330-8755-3
  • DOI: https://doi.org/10.7249/RR980
  • Document Number: RR-980-RC

Citation

RAND Style Manual

Saltzman, Evan and Christine Eibner, The Effect of Eliminating the Affordable Care Act's Tax Credits in Federally Facilitated Marketplaces, RAND Corporation, RR-980-RC, 2015. As of February 14, 2025: https://www.rand.org/pubs/research_reports/RR980.html

Chicago Manual of Style

Saltzman, Evan and Christine Eibner, The Effect of Eliminating the Affordable Care Act's Tax Credits in Federally Facilitated Marketplaces. Santa Monica, CA: RAND Corporation, 2015. https://www.rand.org/pubs/research_reports/RR980.html.
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