Improving Affordability of Insurance for Consumers by Eliminating the Firewall Between Employer and Individual Markets

Commonwealth Fund June 6, 2024
Jessica S. Banthin, Laura Skopec, Urmi Ramchandani

TOPLINES

The Affordable Care Act prohibits people who receive an affordable offer of employer-sponsored insurance from receiving premium tax credits to purchase coverage through the individual insurance marketplace

Removing the ACA “firewall” between the employer and individual insurance markets would likely reduce the uninsured population by 1.4 million and save households $4.4 billion in health care spending by allowing a switch to more affordable coverage

Abstract

• Issue: The Affordable Care Act (ACA) includes a “firewall” provision that prohibits workers with an affordable offer of employer-sponsored insurance (ESI) from receiving premium tax credits in the individual insurance marketplace. Eliminating the firewall could help certain low-income workers find more affordable coverage options in the marketplace.
• Goals: Simulate the effects of removing...

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