Health Insurance and Tax Credits

Currently, someone earning between 100 and 400 percent of the Federal Poverty Lebvel (FPL) qualifies for a tax credit to offset the cost of health insurance. Insurance bought with a tax credit must be used to purchase a plan from the Health Insurance Marketplace.

Today, an individual earning up to $48,240 qualifies for a tax credit to help with the purchase of health insurance. For a family of four, the income limit to qualify for assistance is $98,400.

The Senate’s health care bill lowers the income level to qualify for a tax credit to 350 percent of the FPL. This means that an individual could earn no more than $42,210 and still be eligible for a tax credit. For a family of four, the income level is reduced to $86,100.

Also under the Senate’s bill, anyone eligible for any employer-sponsored health care plan doesn’t qualify for a tax credit. In other words, your employer has total control over the health insurance you get.

Lastly, no health insurance purchased with a tax credit can cover abortions beyond incest or rape.

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