Policy Examples

• A 2017 study by the Commonwealth Fund found that rating bands of 5:1, when compared to the Affordable Care Act’s (ACA) 3:1 band, increased federal subsidy spending by a net $8.3 billion. source
• In 2013, before the Affordable Care Act (ACA) changed the banded rate, the Congressional Budget Office (CBO) estimated increases in premiums for younger people, including a 42% increase for those between  21-29 and a 31% increase for those between 30-39. source
• Milliman conducted a study on behalf of AARP, finding a predictable increase in premiums for those under 46 and a decrease if older, under a 3:1 rate band. source