Commonwealth Fund: 1.2 Million Gain Coverage, Lower Premiums Under Bill to Eliminate Tax-Credit Subsidy Cliff
Aug 02 2017
Washington—Senator Dianne Feinstein (D-Calif.) today highlighted an analysis by the Commonwealth Fund showing the benefits of expanding eligibility for tax-credit subsidies to purchase health insurance to those with incomes above 400 percent of the poverty level ($47,520 for an individual).
Feinstein’s bill, the Affordable Health Insurance for the Middle Class Act (S.1307), would eliminate the cliff for tax-credit subsidies so that no individual or family would pay more than 9.69 percent of their monthly income toward health insurance premiums Feinstein released the following statement:
“Democrats want to make the Affordable Care Act work better for families nationwide by addressing affordability issues within the individual market. One solution is our bill to eliminate the sharp cut-off for tax-credit subsidies that blocks middle-class families from receiving financial help.
“The Commonwealth Fund has analyzed this change and the benefits are clear—1.2 million people would gain coverage, premiums overall would decrease and the individual market would have a better balance of healthy and sick enrollees. Importantly, 400,000 people who are insured, but may be struggling to pay their premiums will also gain access to tax-credit subsidies.
“Older Americans between ages 50-64 would see the greatest benefit because they pay up to three times more for insurance. It’s estimated that 96 percent of the newly insured would be in this age group.
“Expanding eligibility for tax-credit subsidies would partially pay for itself. By attracting healthier people to the market and lowering premiums, the federal government would spend less on tax-credit subsidies for those who already receive them.
“The American people want us to solve problems. They want us to work together to improve—not repeal—the Affordable Care Act. Our bill is an important step forward and I urge my colleagues to support it.”