Improves the Senate bill’s subsidies for lower income Americans. Makes the tax credits for health insurance premiums more generous for individuals and families with incomes between 250% and 400% of the federal poverty level (FPL). Reduces cost-sharing for individuals and families with incomes between 100% and 250% FPL as compared to Senate bill. Constrains growth in credits if premiums are growing faster than CPI.
Reduces and phases in the penalty. Penalty for an individual is the greater of a flat fee of $695 by 2016 or 2.5% of income by 2016. Penalty for a family is the greater of 3 times the individual flat fee penalty $2,085 or 2.5% of household income. (Will be phased in. See below)
http://wonkroom.thinkprogress.org/2010/03/18/new-cbo-score-recon/From Kaiser.org (a great info resource) on the individual mandate:
Require U.S. citizens and legal residents to have qualifying health coverage. Those without coverage pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income.
The penalty will be phased-in according to the following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 for the flat fee or 1.0% of taxable income in 2014, 2.0% of taxable income in 2015, and 2.5% of taxable income in 2016. Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment. Exemptions will be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual’s income, and those with incomes below the tax filing threshold (in 2009 the threshold for taxpayers under age 65 was $9,350 for singles and $18,700 for couples).
Premium and cost-sharing subsidies to individuals:
Provide refundable and advanceable premium credits to eligible individuals and families with incomes between 133-400% FPL to purchase insurance through the Exchanges. The premium credits will be tied to the second lowest cost silver plan in the area and will be set on a sliding scale such that the premium contributions are limited to the following percentages of income for specified income levels:
Up to 133% FPL: 2% of income
133-150% FPL: 3 – 4% of income
150-200% FPL: 4 – 6.3% of income
200-250% FPL: 6.3 – 8.05% of income
250-300% FPL: 8.05 – 9.5% of income
300-400% FPL: 9.5% of income
Increase the premium contributions for those receiving subsidies annually to reflect the excess of the premium growth over the rate of income growth for 2014-2018. Beginning in 2019, further adjust the premium contributions to reflect the excess of premium growth over CPI if aggregate premiums and cost sharing subsidies exceed .54% of GDP.
http://www.kff.org/healthreform/sidebyside.cfmLink to Federal Poverty Guidelines:
http://www.slu.edu/Documents/SLUCare/2009-Poverty-Level.pdf