| Popis: |
The Affordable Care Act (ACA) fixes the ratio between health insurance premiums charged to consumers of different ages. We estimate that this regulation substantially raises premiums for younger buyers while reducing them for older buyers, and therefore alters the allocation of coverage to consumers of different ages. Because the value of the subsidies that the federal government provides is directly tied to premiums, this regulation has also had a substantial impact on the federal budget, decreasing subsidy outlays by approximately $2.3 billion. Geographic heterogeneity in the age of consumers leads to corresponding heterogeneity in this regulation's impact on premiums, coverage, and subsidy outlays. We discuss possible implications of tailoring the age-rating regulations to how the age-composition varies across states. |
