Obamacare Subsidy to Cover Big Chunk of Premiums
Posted at 2:15 p.m. on Aug. 14
A new study by the Kaiser Family Foundation estimates how much tax credits will reduce premiums in the exchanges under President Obama’s health care reform law.
“Premium subsidies (in the form of federal tax credits) will be available for people buying their own insurance in new marketplaces or exchanges who have incomes from 100% up to 400% of the poverty level (about $24,000 to $94,000 per year for a family of four in 2014). Those with access to affordable employer-provided insurance or Medicaid are ineligible for tax credits.”
“Across all current individual market purchasers anticipated to continue buying coverage, the average tax credit their families would be eligible for would be $2,672. Assuming all eligible current enrollees applied for a tax credit, the subsidy would reduce the premium for the second-lowest-cost silver plan by an average of 32% across all people now buying insurance in the individual market… Tax credits would subsidize a higher share of the premium for individuals choosing to enroll in lower cost plans.”