Monday, March 6, 2017

How The Affordable Care Act Marketplace Would Be Affected by a Shift in Health Insurance Tax Credits

As a result of the many reforms that are taking place within the healthcare marketplace and with health insurance tax credits, it’s unsurprising that many patients are left confused; some may even find themselves without medical insurance.

What if Tax Credits are Removed or Lowered?

Currently, an important part of discussions surrounding the repeal and replacement of the Affordable Care Act is focused on the type and amount of subsidies that help people afford health insurance. Through the Affordable Care Act, households are rewarded tax credits based on various criteria, including family income, the cost of insurance locally, age and whether or not premiums have increased annually. Under the current Affordable Care Act, households with lower incomes receive higher tax credits.

Under new plans, however, the tax credit offers will not vary with income. In effect, this gives those with higher income levels higher tax credits. Additionally, new plans will not vary tax credits by location. In areas where premiums are higher, no higher tax credits will be given. Read more from this blog.

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