Many Americans who buy their own health insurance will get a tax credit of nearly $2,700 next year per family, according to new research by the Kaiser Family Foundation.
The credits or subsidies, which will vary depending on household size and income levels, will be offered to help these people obtain coverage through the state insurance marketplaces made available under the framework of Obamacare. The non-partisan group estimated that credit will cover 32% of the premiums on average in the “silver plan” for about 26 million lower-income individuals.
“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 written statement. “They will help make coverage more affordable for low- and middle-income people.”
Right now, the federal incentive applies toward those who fall between 100% and 400% of the federal poverty level (for a single person with an income between $11,500 and $46,000; for a family of four, between $24,000 and $94,000).
About half of people who currently have individual market coverage – approximately 48% – will be eligible for the tax credits.
This analysis comes as states continue to announce price tags of various premiums in the new insurance marketplaces under the Affordable Care Act. The report noted these early estimates don’t take into account any federal subsidies to help off set certain costs for policy holders.
Americans who currently lack health insurance will also be eligible for subsidized prices in the new marketplaces.
The Kaiser Family Foundation said their findings are based on data from the Congressional Budget Office and the federal government’s Survey of Income and Program Participation.