A project of the George Washington University's Hirsh Health Law and Policy Program and the Robert Wood Johnson Foundation

House Republicans probe IRS regarding federal exchange tax credits

Posted on August 22, 2012 | No Comments

PDF Version
Key Developments
Implementation Briefs

House Oversight and Government Reform Committee Chairman Darrell Issa and several other Republican colleagues sent a letter to the Internal Revenue Service (IRS) Commissioner, Douglas Shulman, asking him to explain his reasoning for offering tax credits through federal exchanges. In the letter, House Republicans argue that the Affordable Care Act (ACA) does not authorize the IRS to offer the credits.

Senate Finance Committee Chairman Max Baucus argued that it was a drafting error to only permit state-run insurance exchanges to offer the tax credits.

No Comments

Public comments are closed.

Guidance issued by the Internal Revenue Service (IRS) permits married individuals separated from their spouses due to domestic violence to receive income-based premium tax credits. Typically, spouses are expected to file taxes jointly in order to be eligible for premium subsidies under the Affordable Care Act (ACA). Today's guidance allows for an exception to this rule and also extends the enrollment deadline for this population by two months, through May 31st.
The Affordable Care Act (ACA) established American Health Benefit Exchanges (the Exchange or Exchanges), a marketplace where consumers can choose a private health insurance plan to fit their health needs. The Exchanges will provide Americans with access to the same health insurance choices as members of Congress. Today, the Treasury Department issued final regulations implementing the premium tax credit that will give middle-class Americans unprecedented tax benefits to make the purchase of health insurance affordable. Premium tax credits will, first and foremost, make...
Yesterday, the Center for Consumer Information and Insurance Oversight (CCIIO), a branch of the Centers for Medicare and Medicaid Services (CMS), released a bulletin outlining how government will verify access to employer-sponsored coverage. This is a necessary part of the process for determining eligibility for advance payments of the premium tax credit available to support the purchase of qualified health plans (QHPs) through Affordable Insurance Exchanges. The purpose of the bulletin is to request comment from the public on a proposed interim strategy and potential regulatory approach for verification of an applicant’s access to qualifying coverage in an employer-sponsored plan under section 1411 of the Affordable Care Act (ACA). The Department of Health and Human Services (HHS) also solicits comments on the development of a long-term verification strategy. Also yesterday, the Internal Revenue Service (IRS)...
A new report recently published by the Government Accountability Office (GAO) found that people eligible for health coverage tax credits due to unemployment related to foreign trade competition will likely to receive similar health benefits, but smaller subsidies in the new marketplaces under the Affordable Care Act (ACA). The tax credits expire at the end of this year, but only 44,000 people participate in the program. 469,000 other Americans are eligible, but do not participate.
Previous updates have summarized final IRS regulations implementing provisions of the Affordable Care Act that provide premium tax credits to help low- and moderate-income individuals and families buy affordable health insurance through State health insurance Exchanges. The IRS regulations provide that premium assistance tax credits are available to all eligible state residents, regardless of whether their state Exchange is state-operated or federally facilitated. This Update examines a dispute that that has arisen regarding the availability of premium assistance tax credits in federally facilitated state Exchanges.
This Update is the third in a series on a group of three regulations, all of which are summarized at HealthReformGPS.org. Together the rules are designed to implement both the Medicaid eligibility expansions, the process of determining eligibility for premium tax credits and cost sharing assistance in the Exchange individual market, and standards for employers purchasing coverage in Exchanges. Collectively, the rules are designed to allow individuals and families to acquire and keep coverage and move more seamlessly among publicly-supported sources of health insurance as family income and circumstances change.