An analysis by HealthPocket reveals that the ACA’s premium subsidy design may be contributing to the under-enrollment of young adults in the exchanges. Affordable Care Act subsidies are designed to lower premiums for people with incomes of 100% to 400% of the federal poverty level. However, the average maximum income at which young adults qualified for a premium subsidy was $31,744, which is less than 277% of the federal poverty level. Exchange benchmark premiums for younger people can fall short of the percentage of income necessary to trigger a subsidy. Also, the maximum income that qualified for a premium subsidy varied by $7,709 among the eight cities examined. The table below ranks the cities by the highest income where 18 to 34 year-olds were eligible for a subsidy.
Rank City
1 Philadelphia, Pennsylvania ($36,013)
2 Miami, Florida ($33,323)
3 Los Angeles, California ($32,858)
4 Atlanta, Georgia ($32,085)
5 Houston, Texas ($31,732)
6 Detroit, Michigan ($30,266)
7 Chicago, Illinois ($29,374)
8 Phoenix, Arizona ($28,304)
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