But exchange coverage is borderline useless to many enrollees. It requires beneficiaries to fork over huge sums before it kicks in and confines them to narrow provider networks. Rather than subsidize “junk” insurance through the exchanges, lawmakers should deregulate the market so insurers can offer health plans that are affordable and efficient without federal subsidies.
The enhanced subsidies allow people with incomes up to 150% of the federal poverty level, $46,800 for a family of four, to sign up for free exchange coverage at taxpayer expense. Exchange enrollees pay a progressively larger share of income for premiums until they reach 400% of the poverty level, $124,800 for a family of four, when their contributions are capped at 8.5% of income.
Those premium subsidies hide the actual cost of coverage. Consider a hypothetical couple in their 20s living in…
