FACT SHEET: AFFORDABLE CARE ACT IN TENNESSEE
March 3, 2015
AFFORDABLE CARE ACT SIGN UPS AND TAX CREDITS IN TENNESSEE

At the end of Open Enrollment on February 15, 229,093 Tennessee consumers had selected a plan or
were automatically re-enrolled in Marketplace coverage.

82 percent of Tennessee consumers who were signed up as of January 30 qualify for an average tax
credit of $211 per month through the Marketplace.

As of January 30, in the 37 States using the HealthCare.gov platform, the average advance premium tax
credit covers about 72 percent (or $268) of the gross premium, and tax credits will reduce premium
costs across the 37 States by over $1 billion a month.
THE AFFORDABLE CARE ACT IS WORKING IN TENNESSEE
Over the past three months, consumers in Tennessee sent a clear message: The Affordable Care Act is working,
and the quality health coverage offered through the Health Insurance Marketplace is an affordable product
that consumers want.
In the final day of Open Enrollment, more new consumers signed up for health coverage than any other day
this open enrollment or last. And it’s easy to understand why consumers were enthusiastic: 76 percent of
Tennessee Marketplace enrollees as of December 2014 could have obtained coverage for $100 or less after
any applicable tax credits in 2015.
Health insurers sent a message as well. They competed for consumers’ business. In Tennessee, consumers
could choose from 5 issuers in the Marketplace in 2015 – up from 4 in 2014. Tennessee consumers could
choose from an average of 71 health plans in their county for 2015 coverage – up from 48 in 2014.
We've achieved an historic reduction in the uninsured – the largest over any period since the early 1970s.
Furthermore, in 2014, hospitals saved an estimated $5.7 billion in uncompensated care costs because of the
Affordable Care Act, with states that have expanded Medicaid seeing about 74 percent of the total savings
nationally, compared to states that have not expanded Medicaid.
WHAT’S AT STAKE IN THE KING CASE

Urban Institute: “A victory for the plaintiff would increase the number of uninsured by 8.2 million
people and eliminate $28.8 billion in tax credits and cost-sharing reductions in 2016 ($340 billion over
10 years) for 9.3 million people.”

Urban Institute: “Under a decision for the plaintiff in King v. Burwell, 2016 health care spending for
those losing coverage would fall from $27.1 billion to $5.3 billion paid by the uninsured and $12.0
billion in uncompensated care.”

RAND Corp.: Individual-market enrollment “would decline by 9.6 million, or 70 percent, in FFM
states if subsidies were eliminated.”
ENDING TAX CREDITS WILL CAUSE PREMIUMS TO SKYROCKET

Avalere Health: “Nearly 7.5 million Americans could face a premium increase in 2015 if the Supreme
Court finds that consumers in states with a federally operated exchange are not eligible for subsidies under
the Affordable Care Act. Individuals receiving subsidies in affected states could see an average increase
of 255 percent in their required premium contributions, if the Court ultimately rules in favor of the
plaintiffs in King v. Burwell.”

RAND Corp.: “Unsubsidized premiums in the ACA-compliant individual market would increase 47
percent in FFM states. This corresponds to a $1,610 annual increase for a 40-year-old nonsmoker
purchasing a silver plan.”
EXPERTS AGREE: ENDING TAX CREDITS WOULD DO MASSIVE DAMAGE TO MARKETPLACE CONSUMERS

American Hospital Association: “We will not mince words: petitioners’ position, if accepted, would be
a disaster for millions of lower- and middle-income Americans.”

National Women’s Law Center: “These tax credits are critical. Over 9 million women, who would
otherwise go without affordable health insurance, are eligible to benefit from them, including a
disproportionate number of women of color.”

Harvard Law School Center for Health Law and Policy Innovation: An adverse ruling “would
undermine the Nation’s ability to address HIV, future epidemics and other emerging public
health threats.”

Public Health Deans, Chairs, and Faculty, et al.: “Applying the results of a prior study estimating
mortality declines linked to the first four years of health reform in Massachusetts, a loss of health
insurance by estimated 8.2 million persons can be expected to translate into over 9,800 additional
deaths annually. Diabetes, high blood pressure, and depression rates—all associated with premature
mortality—are higher in the group of states whose residents depend on the [federal Marketplace].
Eliminating subsidies in these states would deprive precisely those individuals of affordable health
insurance.”
AMERICANS WANT ACA TAX CREDITS UPHELD

Hart Research Associates: “A large majority (71 percent) of Americans believe that the tax credits
under the Affordable Care Act should be available to people in all 50 states.” (March 2, 2015)

Morning Consult: “Most Americans want subsidies under Obamacare to survive the upcoming Supreme
Court case that challenges their legality. 68 percent think Americans should have access to health care
subsides, regardless of whether they come from a state or federal exchange.” (February 10, 2015)

Kaiser Health News: “Nearly two thirds of the public (64 percent) say Congress should pass a law
making subsidies available in all states.” (January 28, 2015)