Up to 300,000 Utahns qualify for tax subsidies for health insurance premiums
SALT LAKE CITY — Up to 300,000 Utahns may be eligible to receive an available tax credit if they buy health insurance on the federal marketplace.
The subsidy, meant to make health care more affordable for more Americans, is available to people with incomes between 100 percent and 400 percent of the federal poverty level, and it is applied to the premium cost of any plan purchased at healthcare.gov.
"When people hear that, they're no longer complaining about having to buy health insurance, and they're excited about what they can qualify for, typically," said Randall Serr, director of Take Care Utah, a consumer health assistance program hosted by the Utah Health Policy Project that, with United Way, is receiving federal grant money to help Utahns enroll for coverage.
Serr said that despite a federal marketplace website that is not yet completely reliable, Utahns have been able to submit paper applications for health insurance and use helpful tools, such as a subsidy calculator, to get an estimate of how much of a tax credit they might qualify for.
The tax credit is then applied directly to premium costs and paid to the insurer.
A new report from the Kaiser Family Foundation estimates the number of eligible Utahns using an analysis of federally collected population and economic data. The report also suggests that by 2018, around 20 million people covered in marketplaces nationwide will receive premium tax credits to aid them with their premium costs.
Tax credits are expected to average $2,700 for individual coverage purchased on the marketplace, and about $5,500 per family, covering about 32 percent of premiums for a so-called "silver," or midlevel plan, according to Kaiser.
"Tax subsidies are an essential part of the equation for many people who buy insurance through the new marketplaces next year," Foundation President and CEO Drew Altman said in a prepared statement. "They will help make coverage more affordable for low- and middle-income people."
People without insurance after March 31, 2014, will be assessed a fee with their taxes the following year.
"The subsidies make (health insurance) obtainable. They make it affordable. They make it a reality that people can work into their monthly budget and still have money left over for their car and food and housing and saving for their child's education," said Jason Stevenson, education and communications director for the Utah Health Policy Project, a nonprofit group that advocates for health care for all Utahns.
He said the group believes more Utahns than originally projected might become eligible for subsidies, as businesses adapt to the changes inflicted by the Affordable Care Act and perhaps send more people to the marketplace to purchase insurance.
The Kaiser report, which provides state-by-state data, suggests that 206,000 Utahns are eligible for premium assistance through a subsidy, but a previous Families USA-commissioned report states that nearly 270,000 Utahns could qualify for the help.
Tax credits are determined on a sliding scale, based on income, so that individuals and families with the lowest incomes will receive the largest tax credits, "ensuring that the assistance is targeted to the people who need it most," according to the Families USA report. Tax credits are also only available to marketplace enrollees.
"People who have higher incomes are still getting help, but they're getting a smaller amount of help," Stevenson said.
The amount of people eligible in Utah puts the Beehive State about average, in the middle of all states.
- Hillary's grace: Watching her daughter...
- Utah's first family of rodeo: Riding buckin'...
- Report: Utah home to 'most impressive'...
- Tanker crash sends oil into Provo River as...
- Olene Walker, Utah's first and only female...
- Traditions old and new celebrated as Temple...
- MTC missionaries spend Thanksgiving preparing...
- Utahns urged to shift spending during Small...
- Ogden woman sues trooper, alleging he... 36
- Feds: Utah companies accused of... 26
- Man steals woman's boarding pass,... 13
- The new Thanksgiving tradition: A quick... 11
- MTC missionaries spend Thanksgiving... 9
- Olene Walker, Utah's first and only... 9
- Utah liquor consumption is up, but... 8
- New barriers, other security measures... 5