Nearly 26 Million Americans Will Be Eligible for New Health Insurance Premium Tax Credits in 2014
Apr 25, 2013 | 1178 views | 0 0 comments | 4 4 recommendations | email to a friend | print

Nearly 26 Million Americans Will Be Eligible for New Health Insurance Premium Tax Credits in 2014

New Report Provides Breakdown of Tax Credit Eligibility by Income, Age, Race and Ethnicity, and Employment Status

 

Washington, D.C.— A report released today says that, in 2014, nearly 26 million Americans will be eligible for premium tax credits that will help them pay for health coverage—a doorway to quality health care for individuals and families of all ages and of all racial and ethnic backgrounds across the nation. 

The report from the national health consumer organization Families USA includes both national data and state-specific data showing how many families in different income brackets—ranging as high as $94,200 for a family of four—will soon be protected from having to spend more than a set percentage of their income for health coverage.

Under the Affordable Care Act, these premium tax credits take effect in January 2014, following an open enrollment period that begins in October of this year. The tax credits will be determined on a sliding scale based on income. People with the lowest incomes will receive the largest tax credits, ensuring that those who need it most will get the greatest financial assistance.

The tax credits will help Americans purchase health insurance that meets their specific needs in the new health insurance marketplaces, sometimes called “exchanges,” which are being set up in every state. The tax credits will flow directly to the health plans in which families or individuals enroll, offsetting the total cost of plan premiums.

In terms of eligibility for American families, the report, “Help Is at Hand: New Health Insurance Tax Credits for Americans,” says:

  • Nearly 26 million Americans will be eligible for new premium tax credits in 2014.
  • People with annual incomes between $47,100 and $94,200 for a family of four (incomes between 200 and 400 percent of the federal poverty level) will make up about 56 percent of those eligible for the tax credits.
  • About 58 percent of Americans who will be eligible for the premium tax credits will be white, non-Hispanics; while about 11 percent of those eligible will be black, non-Hispanics; and about 23 percent those eligible will be Hispanic. About 8 percent of eligible Americans will be other races, self-identifying as American Indian, Aleut or Eskimo, Asian or Pacific Islander, or a member of more than one group.

The report provides the same data on eligibility for individual states. For example:

  • In Florida, more than 1.7 million people will be eligible for premium tax credits, and about 56 percent of those residents will be families with incomes between 200 and 400 percent of the federal poverty level. About half (51 percent) of the Floridians who will be eligible for the premium tax credits will be white, non-Hispanics; while 13 percent of the eligible Floridians will be black, non-Hispanics; about 30 percent of the eligible Floridians will be Hispanic; and about 5 percent will be other races.
  • In Michigan, more than 745,000 people will be eligible for premium tax credits, and about 56 percent of those residents will be families with incomes between 200 and 400 percent of the federal poverty level. About three-quarters (about 75 percent) of the Michiganders who will be eligible for the premium tax credits will be white, non-Hispanics; while about 13 percent of the those eligible will be black, non-Hispanics; about 6.5 percent will be Hispanic; and about 6 percent will be other races.
  • In Texas, nearly 2.6 million residents will be eligible for new premium tax credits, and about 53 percent of those residents will be families with incomes between 200 and 400 percent of the federal poverty level. About 37 percent of the eligible Texans will be white, non-Hispanics; while about 10 percent will be black, non-Hispanics; about 48 percent of the eligible Texans will be Hispanic; and about 5 percent will be other races.
  • In West Virginia, more than 142,000 people will be eligible for premium tax credits, and about 55 percent of those residents will be families with incomes between 200 and 400 percent of the federal poverty level. About 92 percent of the West Virginians who will be eligible for the premium tax credits will be white, non-Hispanics; about 3 percent of the eligible West Virginians will be black, non-Hispanics; about 2 percent will be Hispanic; and about 3 percent of those eligible will be other races.

The report also provides specific data on the employment status and age of eligible Americans, showing that an overwhelming number of those who will be eligible for tax credits will be in working families, and that younger Americans (ages 18-34) make up a large proportion of those who will be eligible for assistance.

“The tax credit subsidies are a game changer: They will make health coverage affordable for huge numbers of uninsured families who would have been priced out of the health coverage and care they need,” said Ron Pollack, Executive Director of Families USA.

 

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005

202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org

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