scholarly journals Expanding Access through Public Coverage: Permitting Families to Use Tax Credits to Buy into Medicaid or SCHIP

2001 ◽  
Vol 38 (2) ◽  
pp. 146-158 ◽  
Author(s):  
Alan R. Weil
Keyword(s):  
Health Insurance ◽  
Health Plan ◽  
Low Income ◽  
Health Program ◽  
The State ◽  
Tax Credits ◽  
Tax Credit ◽  
Flow Problems ◽  
Insurance Program ◽  
Low Income Families

A new tax credit to help low-income families and individuals purchase health insurance can address the problem of affordability, but will not overcome other barriers these populations face in obtaining coverage. This paper proposes that families have the option of using a new tax credit to buy into a state-administered system such as Medicaid or the State Children's Health Insurance Program. This option has three advantages. First, it allows families to remain with a single health program and health plan as their income fluctuates. Second, it provides an alternative to the complex and confusing individual insurance market. This alternative is community rated, does not use underwriting, and allows health plan behavior to be monitored closely by the state. Third, it allows the state to act as a financial buffer—helping overcome the barrier to participation that cash-flow problems and year-end reconciliation concerns are likely to create among a low-income population. Many people would want to use their tax credit in the private market, but the buy-in option increases the likelihood that the tax credit approach would succeed.

scholarly journals Public Subsidies for Employees' Contributions to Employer-Sponsored Insurance

2001 ◽  
Vol 38 (2) ◽  
pp. 121-132 ◽  
Author(s):  
Mark Merlis
Keyword(s):  
Health Insurance ◽  
Low Income ◽  
Cost Effective ◽  
Tax Credits ◽  
Public Subsidies ◽  
Low Income Families ◽  
Employee Premium Contributions ◽  
Premium Contributions ◽  
Insurance Tax ◽  
Fair Balance

Proposals to provide or subsidize health insurance for low-income families must take account of the fact that many workers have access to employer-sponsored insurance (ESI), but decline it because of required employee premium contributions. This article considers a tax credit for the employee share of ESI in the context of a broader program of income-based health insurance tax credits. Helping uninsured workers pay for available ESI could be more cost-effective than subsidizing their coverage in the nongroup market. The credit would also be available to workers who were already covered, both for equity reasons and to reduce the incentives for employers to drop coverage or for workers to shift to subsidized individual plans. One key issue is how to prevent employers from reducing their current health plan contributions to take advantage of the new funding. Other design questions considered by the article include whether workers should be able to choose between ESI and nongroup coverage, whether minimum benefit standards should apply for employer plans, and how to achieve a fair balance in subsidies for group and nongroup coverage.

SCHIP Renewal

2009 ◽  
Vol 28 (3) ◽  
pp. 143-143
Author(s):  
Gail McCain
Keyword(s):  
Health Care ◽  
Health Insurance ◽  
Low Income ◽  
Health Care Insurance ◽  
Federal Poverty Level ◽  
Poverty Level ◽  
Low Income Children ◽  
Insurance Program ◽  
Health And Development ◽  
Low Income Families

IN FEBRUARY OF THIS YEAR, THE STATE CHILDREN’S HEALTH Insurance Program (SCHIP) Reauthorization Act of 2009 was officially extended through 2013. SCHIP is a joint insurance program between the federal government and the states, which provides health insurance for low-income children and pregnant women who are not eligible for Medicaid. That is, states provide SCHIP for children in families with incomes up to 200 percent of the federal poverty level ($21,000 to $42,000 for a family of four). SCHIP currently provides health care insurance to approximately 7 million children who otherwise would not receive health care benefits.1 There are an additional 6 million children who are eligible, but not enrolled in either SCHIP or Medicaid.2 As more families face job loss and the associated loss of health insurance, SCHIP is even more important for the health and development of infants and children in low income families.

A Health Insurance Tax Credit for Uninsured Workers

2001 ◽  
Vol 38 (2) ◽  
pp. 106-120 ◽  
Author(s):  
Lawrence Zelenak
Keyword(s):  
Health Insurance ◽  
Low Income ◽  
Insurance Coverage ◽  
Health Insurance Coverage ◽  
Tax Credits ◽  
Tax Credit ◽  
Poverty Level ◽  
The Cost ◽  
Insurance Tax ◽  
Age And Sex

This paper describes a new system of tax credits to help low-income workers pay for health insurance. The system would be designed to subsidize health insurance coverage for workers who are currently uninsured, or who pay high premiums for nongroup insurance. Anyone age 19 or older who is not covered by Medicaid, Medicare, or employer-sponsored health insurance would be eligible for a health insurance tax credit (HITC), administered through the Internal Revenue Service. The base amount of the proposed credit would be $2,000 per year for each covered individual, but this amount would be adjusted for the individual's age and sex, according to the effect of age and sex on the cost of insurance coverage. The base amount of the credit would be reduced by $150 for every $1,000 by which a person's income exceeded 200% of the federal poverty level, thus limiting HITC eligibility to lower-income workers. To encourage participation in the credit program, most of the credit would be available through an advance payment system, with final reconciliation after year's end.

Voluntary Public Health Insurance for Low-Income Families: The Decision to Enroll

1995 ◽  
Vol 20 (4) ◽  
pp. 955-972 ◽  
Author(s):  
Carolyn W. Madden ◽  
Allen Cheadle ◽  
Paula Diehr ◽  
Diane P. Martin ◽  
Donald L. Patrick ◽  
...  
Keyword(s):  
Public Health ◽  
Health Insurance ◽  
Low Income ◽  
Public Health Insurance ◽  
Low Income Families

‘The Pragmatist’s Solution to Poverty’

2019 ◽  
pp. 125-144
Author(s):  
Peter Sloman
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Credits ◽  
Basic Income ◽  
British Government ◽  
Conservative Government ◽  
System P ◽  
Low Income Families ◽  
The Cost ◽  
Negative Income Tax

The ‘rediscovery of poverty’ prompted a wide-ranging debate over how the British government could best support low-income families. One radical response came from Edward Heath’s Conservative government, which published plans to replace the whole system of personal tax allowances with refundable tax credits—the closest any British government has come to introducing a Universal Basic Income. This chapter examines the origins of the Tax Credit Scheme in 1971–2, which was devised by special adviser Arthur Cockfield in response to the rising cost of tax administration and the difficulty of establishing a selective Negative Income Tax in Britain. As the plans took shape, however, the cost of introducing the reforms on a no-losers basis became a source of growing concern within government. Indeed, Treasury officials were relieved when Labour’s victory in the February 1974 election made it possible to jettison the scheme and focus on simplifying and computerizing the PAYE system.

Sign in / Sign up

Export Citation Format

Share Document