Return to: Where We Stand | ACP-ASIM Online

Comparison of Key Provisions in Tax Credit Proposals

 

ACP-ASIM
Proposal

 Armey
(draft summary)
"Fair Care for the Uninsured"		 McDermott
H.R. 539
February 4, 1997		 Norwood
H.R. 1136
March 16, 1999		 Daschle
S. 13
January 27, 1997
Contribution $2800/adult at 100% of poverty level

$2400/adult at 150% of poverty level

(ACP-ASIM's proposal is designed to provide coverage to those not already covered by SCHIPs)

 $800/adult

$400/child

$2400 limit per family

30% credit of health insurance expenses to cover individual, spouse and dependents
No employer sponsored coverage

$1200/adult

$600/child

$3600 limit per family

Employer sponsored coverage

$400/adult

$200/child

$1200 limit per family

 90% credit of private health insurance premium for families up to 200% of poverty level

Credit would decrease on a sliding scale basis until it is phased out for families with incomes above $75,000

Who Is Eligible Adults at 100-150% of poverty level without existing coverage. Available to all who are not covered by other federally subsidized health benefits or an employer-sponsored health plan. Available to individuals with an AGI up to $25,000 or joint filers with an AGI up to $40,000. Available to all except for individuals in Medicare and military health care programs. Available to uninsured children under 19 who are not eligible for Medicaid and do not have access to employer subsidized or sponsored plans.
How Verified Builds on state infrastructure for administering SCHIPs.       State would certify eligibility.
How Administered Year end income taxes

Or

Advance payment option via monthly vouchers to the enrollee or directly to the health plan.

 Year end income taxes. Year end income taxes. Administered monthly by the insurance company. Year end income taxes.
Measures to Prevent Substitution By limiting eligibility to low-wage uninsured persons, substitution is less likely to occur.

States would confirm individual's uninsured status with their employer.

 Limits eligibility to uninsured individuals not covered by other federally subsidized health benefits or an employer-sponsored health plan. Limits eligibility to uninsured individuals with an AGI of $25,000 or joint filers with an AGI of $40,000.   Non discrimination language

Employers who drop family coverage would cause employee's children to be ineligible for 12 months.

Outreach

Efforts

 Funding is provided for state level outreach.       Grants would be provided to states to implement outreach.

Prepared by ACP-ASIM Division of Governmental Affairs and Public Policy, April, 1999

 

Comparison of Tax Credit Proposals to Proposed Criteria

  ACP-ASIM Armey

McDermott

 Norwood Daschle
Targeted to those most in need AND contributes enough to make affordable coverage available to low-wage uninsured persons Yes, targeted to uninsured individuals at 100-150% of poverty level.

Contribution is enough to make coverage affordable. Advance payment option makes contribution available at time premiums is paid.

 No, contribution is not enough to make coverage affordable for low-income individuals at 100-150% of poverty level. No, contribution is not enough to make coverage affordable for low-income individuals at 100-150% of poverty level. No, contribution is not enough to make coverage affordable for low-income individuals at 100-150% of poverty level. No, by excluding adults, this bill would not go far enough in providing coverage for all low income uninsured individuals.
Minimizes incentives for insured persons to substitute the tax credits for existing coverage Yes, by limiting availability to uninsured individuals who are at 100-150% of the poverty level. Uninsured status would be verified by states. Partially, by limiting availability to individuals who are not covered by other federally subsidized health benefits or an employer-sponsored health plan. But by allowing higher income groups to claim tax credits, substitution is more likely to occur. Partially, by limiting availability to uninsured individuals with an AGI up to $25,000 and joint filers with an AGI up to $40,000. Targeting the credit to individuals with incomes up to 150% as ACP-ASIM proposes, would further reduce substitution. No, this bill encourages substitution by allowing contributions to those who are already covered by employer-sponsored health plans. No provisions in plan to prevent substitution. Yes, by limiting availability to uninsured children under age 19. Also includes provisions in bill to prevent employers from dropping dependent coverage.
Defines the administrative structure to implement the tax credits

Explains what they will cost


Suggests sources of financing

 Yes, proposal would build on existing state administrative structure.


Yes, cost of program for fiscal years 2000 through 2004 would total $57 billion

Yes, through savings in disproportionate share payments and federal budget surplus.

 Proposal relies on IRS for implementation. It would be more effective to build on existing state administrative structure.
Proposal relies on IRS for implementation. It would be more effective to build on existing state administrative structure. Yes, the insurance companies would administer credits.


Has not been scored by the CBO.


No suggested sources of financing.

 Proposal relies on IRS for implementation. It would be more effective to build on existing state administrative structure.

Prepared by ACP-ASIM Division of Governmental Affairs and Public Policy, April, 1999

Return to: Where We Stand | ACP-ASIM Online