- People in high cost areas (e.g., New York City, Boston, South Florida, Chicago, Los Angeles) would get much bigger subsidies than those in low cost areas (e.g., much of the rest of the country, especially in rural areas). The subsidies are calculated as a percentage of the “reference premium,” which is determined based on the cost of plans sold in that particular geographic area.
The House bill outline is not specific on this point. I would not expect it to be – this is something you can tell only from legislative language.
In other words, Utahns would subsidize people on the Upper East Side of New York, Beacon Hill in Boston, or the Gold Coast of Chicago.