Premium Tax Credit Could Slash Private Health Insurance Costs
"This is one of the largest middle-income tax cuts in history," said Ron Pollack, executive director of Families USA, in a statement.
The tax credits will be provided on a sliding-scale. For example, a four-person family purchasing a $15,000 family insurance plan in 2014 with $60,000 in annual income would receive tax relief of approximating $10,200. A similar family with annual income of $35,000 would receive tax relief approximating $13,600.
When a person or family qualifies for a tax credit, the dollars from the credit will go directly into the health plan in which they are enrolled—offsetting the cost of the family's health premiums for that healthcare plan, according to the report.
The tax credits also will be advanceable: This means that families would not have to wait until their taxes have been filed and processed in order to receive the tax credit and enroll in coverage. They also would not have to pay the full premium cost at the time of enrollment—and then wait to be reimbursed
Families USA, a Washington, DC-based non-profit advocate for consumer health care has released state-specific data about the number of people in each state who will be eligible for the tax credits and the amount of tax relief provided to families in that state in 2014.
Janice Simmons is a senior editor and Washington, DC, correspondent for HealthLeaders Media Online. She can be reached at firstname.lastname@example.org.
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