R41137 – Health Insurance Premium Credits in the Patient Protection and Affordable Care Act (ACA) – 6/13/2012

$19.95

Health Insurance Premium Credits in the Patient Protection and Affordable Care Act (ACA)

Description

Author: Bernadette Fernandez, Specialist in Health Care Financing; Thomas Gabe, Specialist in Social Policy

Pages: 30

New federal tax credits were authorized in the Patient Protection and Affordable Care Act (ACA, P.L. 111-148, as amended), to help certain individuals pay for health insurance coverage, beginning in 2014. The tax credits will go towards the cost of purchasing coverage offered through health insurance exchanges-marketplaces offering comprehensive, private health plans. This report describes who will be eligible for the premium credits, and how the credit amounts will be calculated. It also highlights key issues raised by the Internal Revenue Service (IRS) in the notice of proposed rulemaking (NPRM) on the premium credits. The Appendix provides analysis of the concept of “affordability” as applicable to the premium credits. Bills: H.R. 436