Health Issues / Health Care Reform
Tuesday, August 20, 2002
The United States tax code offers several incentives to provide health insurance. However, millions of Americans aren't eligible for those incentives. To correct this, President Bush has proposed a refundable tax credit for health insurance for millions of mostly low-income employees who aren't covered by a company health plan:
The credit would provide a subsidy of up to 90 percent of the cost of health insurance premiums. The maximum credit would be $1,000 per adult and $500 per child for a maximum family credit of $3,000. The maximum 90 percent subsidy would be available to the lowest income groups, with it being phased down at higher income levels.
Because the tax credit is refundable, even low-income taxpayers would be able to use it. Even better, the tax credit is applicable when purchasing insurance, so families do not have to wait until tax filing season to access the money