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Adult Gap Years Are Becoming A Trend And Europe A Favorite Destination

Adult Gap Years Are Becoming A Trend And Europe A Favorite Destination
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Balloon Juice | Price linked subsidies and who cares about spreads or levels


The Affordable Care Act’s individual market is likely to have significant legislative policy changes this year.  However, if there is not a fundamental restructuring of how the subsidy system works, weird things are likely to happen that are counter-intuitive.   We need to understand how price-linked subsidies work and who those subsidies apply to.
The ACA subsidy system is based on filling a gap.  The gap is the difference between the benchmark gross premium and an individual household’s applicable percentage of income.  The federal premium tax credit (PTC) serves as a gap filler.  The PTC is designed so that two households that are identical in all aspects (age composition, number of household members, and family income as a function of countable federal poverty level (FPL)) pay the same amount out of pocket for their benchmark plan even if there are massive differences in the gross premium of the benchmark plan. ....

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