Panel Paper: The ACA and Premium Affordability: Evidence from the Self-Employed

Thursday, November 6, 2014 : 9:10 AM
Ballroom A (Convention Center)

*Names in bold indicate Presenter

Bradley Heim1, Ithai Lurie2, Shanthi Ramnath2 and Gillian Hunter2, (1)Indiana University, (2)U.S. Department of the Treasury
This paper examines the impact of the Affordable Care Act on premiums among an important subset of the individual health insurance market, the self-employed.  Because self-employed individuals are able to deduct health insurance premiums when calculating income taxes, tax data contains comprehensive individual-level information on the premiums paid by this group prior to the establishment of health insurance exchanges.  We compare these prior premiums to reference premiums available on the exchanges, and examine what fraction of the self-employed face premium increases both gross and net of taxes and subsidies.  We also perform separate tabulations by income and age.  Finally, we examine what metal tier of exchange health insurance would be affordable given the self-employed individual’s prior health insurance premiums.