The subsidies also make it so a person cannot pay more than a certain percentage of their income on premiums. Under the Senate bill, the percentage would increase with age. For instance, a 33-year-old person who makes $50,000 annually, or 332% of the poverty line, would pay up to 8.9% of their income on premiums, or $4,450 a year. For a person age 61, that increases to 16.2% of their income, or $8,100 a year.
Additionally, the benchmark plan for Obamacarehas an actuarial value — in essence, the percentage of all costs covered — of 70%. Under the Senate bill, the value would drop to 58%. In practice, that would mean many plans would have higher deductibles and out-of-pocket costs.
The bill also would repeal the mandate that employers provide coverage, so more people (in any income bracket) could also end up in that boat.
Bottom line: People receiving subsidies would likely end up paying more, and fewer middle-income Americans would receive assistance with premiums.