Question: A question is a simplified example of how subsidies work in the insurance exchanges under the ACA. suppose a person with an income of $50,000

A question is a simplified example of how subsidies work in the insurance exchanges under the ACA. suppose a person with an income of $50,000 is expected to pay 6% of income if he purchases a benchmark policy. suppose the benchmark policy has an annual premium of $12000. if this person chooses instead a policy with an annual premium of $13000 how much will he pay for it?

2.Continuing to the previous example, suppose the premium for the benchmark policy increased by 20%. if this person is unchanged and he continues to buy insurance in the exchange, what will happen to his subsidies result of the benchmark premium increase.

it will not change
the annual subsidy will increase by at least by $2400
the annual subsidy will increase by at least $2400, with the amount depending on which policy buys.
none of the above is correct.

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