Friday, February 04, 2005

Bush Healthcare Tax Credits Not Helpful To Low Income Families

The Bush administration will propose a tax credit of up to $3000 to help increase the number of people with health insurance. It appears these tax credits will be aimed at families whose incomes are below $60,000 per year and individuals who incomes are below $30,000.

Those eligible for the credit would be younger than 65 and not enrolled in public or employer health plans. Individuals who make more than $30,000 and families that make more than $60,000 would see smaller credits, the officials said.

The Treasury Department suggested the tax credit, which could help ease the Medicaid burden on states, said Bill Pierce, an HHS spokesman. Insurance bought with the tax credit could become attractive for some people if states tighten rules on Medicaid eligibility or cap benefits.

Although this plan might help some families, the question arises as to what about those who are below the income guidelines but still don’t qualify for Medicaid? Smaller families, like a single parent family with one child, or even some families of 3 or 4 may be left out in the lurch by this program. Much like they were left out of the glorious Bush tax cut that was supposed to help families with kids.



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