Re The Health Insurance Reform Bill....there are No Subsidies but TAX CREDITS.

[OmmmSweetOmmm]

For all of you who have been told time and time again here at DU that there were Fed Subsidies to assist in paying for your mandated insurance, you have been somewhat misinformed.

You will be getting a tax credit. In other words, you have to find a way to lay out the whole premium and then wait until you file your taxes and eventually get your refund in order to recoup the amount you laid out.

The best thing to do with this scenario, if you are employed, try to adjust your w4 form by adding more exemptions, which would mean more take home pay. I just wonder how many people will know to do this.

Here is the bill

http://docs.house.gov/rules/hr4872/111_hr4872_amndsub.pdf

[Warren Stupidity]

1. You must have missed the Advance Payment section.

(c) PAYMENT OF PREMIUM TAX CREDITS AND COST4
SHARING REDUCTIONS.—
5 (1) IN GENERAL.—The Secretary shall notify the
6 Secretary of the Treasury and the Exchange through
7 which the individual is enrolling of the advance deter8
mination under section 1411.
9 (2) PREMIUM TAX CREDIT.—
10 (A) IN GENERAL.—The Secretary of the
11 Treasury shall make the advance payment under
12 this section of any premium tax credit allowed
13 under section 36B of the Internal Revenue Code
14 of 1986 to the issuer of a qualified health plan
15 on a monthly basis (or such other periodic basis
16 as the Secretary may provide).
17 (B) ISSUER RESPONSIBILITIES.—An issuer
18 of a qualified health plan receiving an advance
19 payment with respect to an individual enrolled
20 in the plan shall—
21 (i) reduce the premium charged the in22
sured for any period by the amount of the
23 advance payment for the period;
24 (ii) notify the Exchange and the Sec25
retary of such reduction;

http://www.cbsnews.com/htdocs/pdf/Senate_health_care_bill.pdf
around page 291. Search for advanced payment.

[Warren Stupidity]

2. Here is better information.

(Sec. 1412) Requires the Secretary to establish a program for advance payments of the tax credit for premium assistance and for reductions of cost-sharing. Prohibits any federal payments, tax credit, or cost-sharing reductions for individuals who are not lawfully present in the United States.

http://www.opencongress.org/bill/111-h3590/show

[OmmmSweetOmmm]

3. Thank you for the clarification. Question? Does this then mean that every month the Fed Govt will

cut a check to every insurance provider and I can't quite see, but would that be based on the prior years income? Thanks in advance for your help :)

[Warren Stupidity]

5. I give up on the details - but something like that.

[Emit]

4. advanceable tax credit will be available

As noted here:


Premium and cost-sharing subsidies to individuals:

White House/Congressional Leadership Reconciliation Bill
Health Care and Education Affordability Act of 2010
(H.R. 4872)

... Provide refundable and advanceable premium credits to eligible individuals and families with incomes between 133-400% FPL to purchase insurance through the Exchanges. ...

Premium and cost-sharing subsidies to individuals:

Senate Bill
Patient Protection and Affordable Care Act
(H.R. 3590)

.... Provide refundable and advanceable premium credits to individuals and families with incomes between 100-400% FPL to purchase insurance through the Exchanges...

http://www.kff.org/healthreform/sidebyside.cfm




As I understand it, an advanceable tax credit allows people to claim the credit up front when insurance premiums are due rather than waiting until the end of the year for reimbursement. Do you interpret this differently?

[OmmmSweetOmmm]

6. From the other poster it appears to be so. That the govt actually pays the insurance

providers on a monthly basis(?)