Report: Nearly 3M Californians Eligible for ACA Tax Credits
Nearly three million Californians will be eligible for federal tax credits to help pay for health insurance under the Affordable Care Act, according to a report by Families USA, the Sacramento Business Journal reports.
About the Tax Credits
The federal tax credits will take effect in January 2014 to help individuals pay for health plans purchased through state health insurance exchanges.
Individuals eligible for the credits are those with incomes up to four times the federal poverty level, or $46,000 for individuals and $94,200 for a family of four.
The size of the credits will be determined by a sliding scale based on income.
The subsidies will be paid directly to the health plans to offset the total cost of premiums, rather than requiring enrollees to pay the full cost upfront and recoup a discount later (Robertson, Sacramento Business Journal, 4/9).
The report found that more than 85% of all Californians who are expected to qualify for the tax credits are part of families with at least one full- or part-time worker who does not have employer-based coverage.
According to the report, 52% of Californians who are expected to qualify for the credits are from middle-income families earning up to $95,000 annually.
The report also estimated that about:
- 50% of state residents who will be eligible for the credits are Latino;
- 30% of residents who will be eligible for the credits are white; and
- 5% of residents who will be eligible for the credits are black (O'Neill, "KPCC News," KPCC, 4/9).