If you don't understand why...........ask someone else.
Subsidy formula makes some policies costlier for the young - Philly.com
Based on an average of policies across the country, the premium for the cheapest bronze plan turns out to be $240 a month for Emily and $720 for Bob.
To arrive at their monthly premium, you have to subtract the benchmark premium - defined as the second-lowest-cost silver plan - from the premium cap, which is the amount of subsidy given to purchase the benchmark plan based on an individual's income, regardless of what plan is actually purchased.
The benchmark premium for Emily is $290; for Bob, $870. That makes the premium cap (9.5 percent of their income) $270. So Emily receives a $20-a-month subsidy while Bob gets $600 a month. That means that, for the same policy, young Emily will pay $220 monthly premiums, while older Bob pays $120.
Subsidy formula makes some policies costlier for the young - Philly.com
Based on an average of policies across the country, the premium for the cheapest bronze plan turns out to be $240 a month for Emily and $720 for Bob.
To arrive at their monthly premium, you have to subtract the benchmark premium - defined as the second-lowest-cost silver plan - from the premium cap, which is the amount of subsidy given to purchase the benchmark plan based on an individual's income, regardless of what plan is actually purchased.
The benchmark premium for Emily is $290; for Bob, $870. That makes the premium cap (9.5 percent of their income) $270. So Emily receives a $20-a-month subsidy while Bob gets $600 a month. That means that, for the same policy, young Emily will pay $220 monthly premiums, while older Bob pays $120.