‘ObamaCare’ tax subsides will reduce the premium cost of health insurance
Posted by AzBlueMeanie:
There has been some seriously "craptacular" reporting by conservative media about the alleged premium "rate shock" in insurance rates under "ObamaCare." Every time you see one of these reports about premium “rate shock,” make certain you note whether the reporting accounts for tax subsidies or not.
Adrianna McIntyre from Project Millenial reports, Most young adults on the individual market today will qualify for subsidies in 2014:
The Kaiser Family Foundation has a new report out that examines how people currently in
the individual market will be affected by the reforms taking effect in
2014. Premiums will change for variety of reasons. You should read the whole issue brief, or Jon Cohn’s commentary here. As
Kaiser acknowledges, premiums will go up for some people and down for
others. They go a step further, though, and look at how many people in
the current market will benefit from the premium tax subsidies.
About half (48%) of
people now buying their own insurance would be eligible for a tax credit
that would offset their premium. This does not include over one million
adults buying individual insurance today who will be eligible for
Medicaid starting in 2014 (i.e., they have family income up to 138% of
the poverty level and are living in states that have decided to expand Medicaid under the ACA).