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Vorys Health Care Advisors

17 Million Americans to Qualify for Premium Tax Credits; Ohio Has Eighth Most Eligibles

Posted in Affordable Care Act

A new report released by the Kaiser Family Foundation indicates that about 17 million Americans who are currently uninsured or who buy insurance on their own will be eligible for premium tax credits to buy health insurance in the health insurance marketplace beginning in 2014.  As we have discussed in other posts, beginning in 2014, individuals with incomes between 100% and 400% of the federal poverty level ($11,490 to $45,960 for an individual and $23,550 to $94,200 for a family of four) will have access to premium tax credits that will lower the amount of premium they pay for coverage.

Some highlights from the report include the following:

  • Three states (Texas, California, and Florida) each have more than 1 million tax-credit-eligible residents
  • Another seven states have more than 500,000 tax credit-eligible residents.
  • Ohio has the eighth most tax credit-eligible residents, at 544,000 individuals.
  • At the lower end, seven states have fewer than 50,000 tax credit-eligible residents, with the District of Columbia (9,500) and Vermont (27,000) having the fewest.
  • The five states with the most tax credit-eligible individuals account for about 40% of all such individuals nationally.

To conduct the analysis, Kaiser used data from the 2012 and 2013 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC).  They started with a pool of individuals who have no insurance or who purchase insurance on their own.  Kaiser then looked at these individuals’ family incomes under Affordable Care Act rules and the premiums they would face to determine whether they would qualify for a premium tax credit.  Lastly, Kaiser removed approximately 16% of potential eligibles because research shows that some people who are uninsured or purchase insurance themselves have access to employer-based coverage, either through an offer from their own employer or through an offer through a spouse or parent.  Those that remain represent Kaiser’s estimate of tax-credit eligible individuals.  A more complete description of the analysis may be found in the report.