The Affordable Care Act (ACA) will raise household incomes for the poorest fifth of Americans, while higher income groups will experience small losses, according to a new Brookings Institution study.
Researchers Henry Aaron and Gary Burtless found that the ACA will add 7.2% to the incomes of America’s poorest 10%. The second-poorest 10% will see income gains of 5.3%. For everyone else, the ACA will reduce incomes 1.1% or less. The wealthiest 10% will experience the smallest losses—0.3%.
The income gains for poor household are the result of new tax credits designed to make health insurance coverage more affordable.