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Apply ACA PTC formula to historical premiums #8531

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34a4a3e
Apply ACA PTC formula to historical premiums
daphnehanse11 May 27, 2026
1753cbb
Fix changelog fragment path
daphnehanse11 May 28, 2026
eeb9907
Add historical ACA contribution percentages
daphnehanse11 Jun 1, 2026
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1 change: 1 addition & 0 deletions changelog.d/8527.fixed.md
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Apply ACA premium tax credit formulas to years with historical SLCSP premiums.
29 changes: 28 additions & 1 deletion policyengine_us/parameters/gov/aca/required_contribution_percentage/final.yaml
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Expand Up @@ -5,17 +5,44 @@ metadata:
reference:
- title: 26 U.S. Code § 36B(b)(3)(A) - Refundable credit for coverage under a qualified health plan
href: https://www.law.cornell.edu/uscode/text/26/36B#b_3_A
- title: IRS Revenue Procedure 2017-36 - Applicable percentage table for 2018
href: https://www.irs.gov/pub/irs-drop/rp-17-36.pdf#page=2
- title: IRS Revenue Procedure 2018-34 - Applicable percentage table for 2019
href: https://www.irs.gov/pub/irs-drop/rp-18-34.pdf#page=2
- title: IRS Revenue Procedure 2019-29 - Applicable percentage table for 2020
href: https://www.irs.gov/pub/irs-drop/rp-19-29.pdf#page=3
- title: IRS Revenue Procedure 2025-25 - Applicable percentage table for 2026
href: https://www.irs.gov/pub/irs-drop/rp-25-25.pdf
values:
# Original ACA (2015-2020): 6 brackets
# Original ACA: 6 brackets
2015-01-01:
- 0.02 # 0-133%: flat 2%
- 0.04 # 133-150%
- 0.063 # 150-200%
- 0.0805 # 200-250%
- 0.095 # 250-300%
- 0.095 # 300-400%: flat 9.5%
2018-01-01:
- 0.0201
- 0.0403
- 0.0634
- 0.081
- 0.0956
- 0.0956
2019-01-01:
- 0.0208
- 0.0415
- 0.0654
- 0.0836
- 0.0986
- 0.0986
2020-01-01:
- 0.0206
- 0.0412
- 0.0649
- 0.0829
- 0.0978
- 0.0978
# ARPA/IRA (2021-2025): 5 brackets, no 133% threshold
2021-01-01:
- 0 # 0-150%: flat 0%
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29 changes: 28 additions & 1 deletion policyengine_us/parameters/gov/aca/required_contribution_percentage/initial.yaml
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Expand Up @@ -5,17 +5,44 @@ metadata:
reference:
- title: 26 U.S. Code § 36B(b)(3)(A) - Refundable credit for coverage under a qualified health plan
href: https://www.law.cornell.edu/uscode/text/26/36B#b_3_A
- title: IRS Revenue Procedure 2017-36 - Applicable percentage table for 2018
href: https://www.irs.gov/pub/irs-drop/rp-17-36.pdf#page=2
- title: IRS Revenue Procedure 2018-34 - Applicable percentage table for 2019
href: https://www.irs.gov/pub/irs-drop/rp-18-34.pdf#page=2
- title: IRS Revenue Procedure 2019-29 - Applicable percentage table for 2020
href: https://www.irs.gov/pub/irs-drop/rp-19-29.pdf#page=3
- title: IRS Revenue Procedure 2025-25 - Applicable percentage table for 2026
href: https://www.irs.gov/pub/irs-drop/rp-25-25.pdf
values:
# Original ACA (2015-2020): 6 brackets
# Original ACA: 6 brackets
2015-01-01:
- 0.02 # 0-133%: flat 2%
- 0.03 # 133-150%
- 0.04 # 150-200%
- 0.063 # 200-250%
- 0.0805 # 250-300%
- 0.095 # 300-400%: flat 9.5%
2018-01-01:
- 0.0201
- 0.0302
- 0.0403
- 0.0634
- 0.081
- 0.0956
2019-01-01:
- 0.0208
- 0.0311
- 0.0415
- 0.0654
- 0.0836
- 0.0986
2020-01-01:
- 0.0206
- 0.0309
- 0.0412
- 0.0649
- 0.0829
- 0.0978
# ARPA/IRA (2021-2025): 5 brackets, no 133% threshold
2021-01-01:
- 0 # 0-150%: flat 0%
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15 changes: 14 additions & 1 deletion policyengine_us/tests/policy/baseline/gov/aca/ptc/aca_ptc.yaml
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- name: ACA PTC returns zero before 2024
- name: ACA PTC calculated for 2023 using historical premiums
absolute_error_margin: 0.01
period: 2023
input:
is_aca_ptc_eligible: true
slcsp: 1_200
aca_magi: 25_000
aca_required_contribution_percentage: 0.04
tax_unit_is_filer: true
output:
aca_ptc: 200 # 1200 - 0.04 * 25000 = 200

- name: ACA PTC remains zero before available rating-area premium data
absolute_error_margin: 0.01
period: 2017
input:
is_aca_ptc_eligible: true
slcsp: 1_200
aca_magi: 25_000
aca_required_contribution_percentage: 0.04
tax_unit_is_filer: true
output:
aca_ptc: 0

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44 changes: 42 additions & 2 deletions policyengine_us/tests/policy/baseline/gov/aca/ptc/aca_required_contribution_percentage.yaml
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Expand Up @@ -22,13 +22,13 @@
output:
aca_required_contribution_percentage: 0.0314

- name: Flat at 100% FPL in 2019 (pre-ARPA, should be 2%)
- name: Flat at 100% FPL in 2019 (pre-ARPA, should be 2.08%)
period: 2019
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 1.0
output:
aca_required_contribution_percentage: 0.02
aca_required_contribution_percentage: 0.0208

- name: aca_required_contribution_percentage unit test 1
period: 2022
Expand Down Expand Up @@ -101,3 +101,43 @@
aca_magi_fraction: 4.0
output:
aca_required_contribution_percentage: 0.0996

- name: 2018 ACA contribution percentage at 100 percent FPL.
period: 2018
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 1.0
output:
aca_required_contribution_percentage: 0.0201

- name: 2018 ACA contribution percentage at 350 percent FPL.
period: 2018
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 3.5
output:
aca_required_contribution_percentage: 0.0956

- name: 2019 ACA contribution percentage at 350 percent FPL.
period: 2019
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 3.5
output:
aca_required_contribution_percentage: 0.0986

- name: 2020 ACA contribution percentage at 100 percent FPL.
period: 2020
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 1.0
output:
aca_required_contribution_percentage: 0.0206

- name: 2020 ACA contribution percentage at 350 percent FPL.
period: 2020
absolute_error_margin: 0.0001
input:
aca_magi_fraction: 3.5
output:
aca_required_contribution_percentage: 0.0978
26 changes: 26 additions & 0 deletions policyengine_us/tests/policy/baseline/gov/aca/ptc/integration.yaml
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Expand Up @@ -92,3 +92,29 @@
selected_marketplace_plan_premium_proxy: 3_929.25
used_aca_ptc: 3_929.25
unused_aca_ptc: 394.31

- name: 2023 aca_ptc_los_angeles_single
absolute_error_margin: 0.01
period: 2023
input:
people:
person1:
age: 40
employment_income: 30_000
is_aca_eshi_eligible: false
tax_units:
tax_unit:
members: [person1]
households:
household:
members: [person1]
state_fips: 6 # CA
county: LOS_ANGELES_COUNTY_CA
three_digit_zip_code: 902
output:
is_medicaid_eligible: [false]
is_aca_ptc_eligible: [true]
slcsp: 4_250.01
aca_magi_fraction: 2.20
aca_required_contribution_percentage: 0.028
aca_ptc: 3_410.01
2 changes: 1 addition & 1 deletion policyengine_us/variables/gov/aca/ptc/aca_ptc.py
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Expand Up @@ -13,7 +13,7 @@ class aca_ptc(Variable):
def formula(tax_unit, period, parameters):
return 0

def formula_2024(tax_unit, period, parameters):
def formula_2018(tax_unit, period, parameters):
plan_cost = tax_unit("slcsp", period)
income = tax_unit("aca_magi", period)
applicable_figure = tax_unit("aca_required_contribution_percentage", period)
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