WASHINGTON, May 2 (UPI) -- Health insurance premium tax credits from the Affordable Care Act work more like a subsidy rather than like a tax credit, a U.S. non-profit group says.
Families USA said beginning in 2014, the Affordable Care Act will extend health coverage to almost 26 million Americans, in part by offering tax credits to help low- and middle-income people, including many not previously insured.
Individuals who don't owe taxes can still receive the subsidy, and they will receive the subsidy when they buy private health insurance -- not as a reimbursement after filing taxes, the group said.
Almost 23 million eligible for the tax credits will be working families, who have incomes between two and four times the poverty level -- between $47,100 and $94,200 for a family of four based on 2013 poverty guidelines.
However, because the size of the tax credits will be determined on a sliding scale based on income, those with the lowest incomes will receive the largest tax credits, ensuring the assistance is targeted to the people who need it most, Families USA said.