Proposed health care plan to replace the ACA would cut tax credits for many Missourians

An analysis of the plan House Republicans have drafted to replace the Affordable Care Act would cut the amount of health care tax credits people receive around the state by more than 50 percent.

The analysis, which was released early this month by Kaiser Family Foundation, compared the current available tax credits allotted to an individual enrolled in health insurance through the health care marketplace and the tax credits outlined in the House replacement plan. The analysis looked at a draft of the proposed plan leaked in February that outlined the same tax credit system.

According to the Kaiser figures and a comprehensive map also released Monday, if the House replacement plan passed as is, not only would many Missouri residents see a decrease in tax credits, but the allocation of benefits would be entirely redistributed.

Health insurance tax credits were created by the Patient Protection and Affordable Care Act, known as “Obamacare.” They are designed to reduce the premium cost of a health insurance plan provided through the health care marketplace and prevent it from costing more than a specific, affordable percentage of an individual or household’s annual income.

While the impact on individuals varies depending on several factors, the proposed House plan could decrease the tax credit for the average enrollee in some Missouri counties by more than 50 percent. In Boone County, a 40-year-old making $20,000 per year could expect a decrease in annual available tax credits of $2,420, or 45 percent.

Read more: Columbia Missourian


Tags:, , , ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students