between household preferences, cost-sharing, and premiums. It applies this model to understand how the income tax subsidy … of a health insurance subsidy in the United States tax code, which enables individuals to pay premiums in pre-tax dollars …, encourages the purchase of more generous health insurance plans. Little is known about how the tax subsidy affects preferences …

of one policy response: linking subsidies to prices, to target a given post-subsidy premium. We show that these price …