The nongroup market spending is the net outcome of repealing ACA subsidies and introducing new AHCA tax credits. We take estimates of current health exchange enrollees by the Kaiser Family Foundation (KFF) and apply estimates from Cutler (2017) on the change in enrollment spurred by the AHCA to get a measure of remaining enrollment in nongroup markets by congressional district (CD). We use this measure to allocate the nationwide amount of tax credits estimated by the Congressional Budget Office (CBO). We also provide an age adjustment that estimates higher tax credits going to CDs whose age 18–64 population skews older, reflecting the fact that under the AHCA tax credits are larger for older enrollees. Specifically, we multiply the share of the 18–64 population that is between 30 and 49 by 1.375 and the share that is 50 and over by 1.875, reflecting the greater generosity of tax credits for these populations relative to those received by the under-30 population.

For Medicaid spending we allocate the CBO estimates of Medicaid spending reductions across states by using the Blumberg et al. (2016) estimates of how partial ACA repeal would be borne. Within states, we allocate the incidence of these spending cuts across CDs proportionally to each CD’s share of the population with incomes beneath the federal poverty line.

For tax cuts, we assume 40 percent of the revenue accrues uniformly across CDs, while allocating 60 percent of it proportionally to each CD’s total share of the population with incomes over $150,000.

Output multipliers are 1.4 for the nongroup spending reductions, 2 for Medicaid spending reductions, and 0.4 for the tax cuts. These parameter choices are explained in Bivens (2017). In 2019, we divide the output change by $146,000 to get employment changes, also explained in Bivens (2017). For each year after 2019, we increase this divisor by 1.5 percent, reflecting expected productivity growth over that time.