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House Republicans target IRS, FFEs

Posted on June 21, 2012 | No Comments

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Key Developments
Implementation Briefs

Two House Republicans introduced new legislation to block an Internal Revenue Service (IRS) rule that will offer tax credits for buying health insurance in Federally Facilitated Exchanges (FFEs). Reps. Scott DesJarlais and Phil Roe maintain that since the Affordable Care Act (ACA) only authorized tax credits for the purchase of insurance on state-run exchanges—and not for federally operated exchanges—the IRS rule cannot offer tax credits in both marketplaces. The legislation would affect many of the estimated 16 million people expected to gain coverage, as about 30 states are expected to have federally run exchanges. Under the IRS rule, premium tax credits will be available to individuals between 100 and 400 percent of the federal poverty level who purchase coverage inside of both state and federal exchanges beginning in 2014. Additional subsidies are available for individuals up to 250 percent of the federal poverty level.

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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...
The U.S. Department of Health and Human Services (HHS) published a final rule on the Affordable Health Insurance Exchanges (Exchanges) this morning. The publication combines policies from two Notices of Proposed Rulemaking (NPRMs) released last summer. The first outlined a proposed framework to enable states to build Exchanges and the second outlined standards for eligibility for enrollment in qualified health plans (QHPs) through the Exchange market. Starting in 2014, Exchanges will be operational...
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This Update is the third in a series on a group of three regulations, all of which are summarized at 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.
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