Premium Tax Credits in the American Rescue Plan and Off-Marketplace Enrollees

AJMC August 10, 2022
Vicki Fung, PhD, Delaney Tevis, BA, Max Weiss, BA, Sharon-Lise Normand, PhD, John Bertko, BS, Joseph P. Newhouse, PhD, John Hsu, MD

We estimate that the median 2021 premium tax credit for off-marketplace enrollees in California would be $311 if they switched to marketplace plans, with wide variation by age and plan size.

ABSTRACT

Objectives: The 2021 American Rescue Plan Act (ARPA) increased the availability and magnitude of premium tax credits (PTCs) for consumers purchasing individual marketplace plans in 2021-2022. Millions currently purchase PTC-ineligible plans off of the marketplace. We estimate the proportion of off-marketplace enrollees who would be eligible for the expanded PTCs under ARPA, calculate PTC amounts for eligible enrollees, and examine factors influencing plan choice that could inform outreach efforts.

Study Design: We analyzed data from a survey of a random sample of off-marketplace enrollees in California in 2017...

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