ACA health insurance will cost the average person 75% more next year, research shows

[GregariousGroundhog]

3. The original ACA legislation limited premium tax credits to those making less than 400% of the federal poverty level

At some point, the subsidies were extended so that premiums were capped at 8.5% of income, no matter how high a person's income became. With that provision sunsetting, those making more than 400% of the FPL are ineligible to be reimbursed for any share of the premiums. This means that a single person making $62,399 per year will have their monthly premium capped at $442, whereas a person who makes $62,401 per year will receive no subsidy; a scenario known as the "subsidy cliff", where earning just $1 more results in a person being expected to cough up several hundred dollars a month more in premiums. It creates a perverse incentive that makes people work fewer hours or to decline a pay raise in order to stay under the cap.