, /PRNewswire/ -- , a leader in health care research and market-based policy proposals, has released alarming findings from an analysis of Obamacare subsidy beneficiaries. Using a combination of government data related to enrollees claiming 100 percent to 150 percent of the federal poverty level (FPL), Paragon found the number of Obamacare subsidy recipients for this income bracket exceeded by millions the number of Americans who actually qualify for this assistance. Paragon's findings are reported in , where in 2024 representing a year.
The provides large financial subsidies for lower-income Americans to purchase health insurance coverage in Healthcare.gov and other state-run health insurance marketplaces known as "exchanges." The subsidies are composed of the (PTC), which lowers the monthly cost of coverage, and the , which lowers the out-of-pocket costs.
President Biden signed the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 that increased the PTCs through 2025. As a result of these laws, people claiming income between 100 percent and 150 percent of the FPL pay for (i.e.
the second-lowest-cost silver plan) from a health insurance exchange. Additionally, enrollees claiming this income range enjoy the benefit of insurance paying a greater portion of covered medical expenses, reducing the enrollees' out-of-pocket expenses. Paragon identified nine states ( , , , , , , , , and ) where the number of sign-ups reporting income in the 100-150 perc.