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ACA vs. AHCA: Tax credit benefits — 5 things to know

The American Health Care Act is expected to impact millions of Americans' premium tax credits based on their age, income and location, according to KFF.

Here's what you need to know:

1. KFF factored premium tax credit estimates by county for ACA enrollees aged 27, 40 and 60 with annual incomes of $20,000, $30,000, $40,000, $50,000, $75,000 and $100,000, respectively.

2. Most current ACA enrollees earn lower incomes:

  • 66 percent of enrollees will earn approximately $31,250 or less in 2020
  • 44 percent will earn $18,750 or less in 2020

3. Most ACA enrollees are under 55 years old:

  • 37 percent are between 35 years old and 54 years old
  • 36 percent are under 35 years old
  • 27 percent are at least 55 years old

4. Enrollees' age, income and location all impact tax credits:

  • People who are older, have lower-incomes or live in low-premium areas (Alaska, Arizona etc.) generally receive larger tax credits under the ACA than they would under the AHCA
  • People who are younger, earn higher-incomes or live in low-premium areas (Massachusetts, New Hampshire, Washington etc.) may receive larger assistance under the replacement plan


5. The ACA and the AHCA differ in their credit calculation approaches:

  • ACA factors family income, local cost of insurance and age into enrollees' accounts
  • AHCA factors age into tax credit approximations and phases out individuals with incomes above $75,000

 

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