Federal Tax Credits and Aggregated Funding

Refundable tax credits form the basis for nearly all of the possible Affordable Care Act replacement plans being debated in Washington. There are several arguments for tax credits.

The amount of the tax credits would vary based on age. One of the many replacement plans was authored by the The 2017 Project. Their proposed tax credits, very similar to those in Tom Price’s Empowering Patients First Act, were based on the cost of individual insurance prior to the Affordable Care Act.

The average amount of these tax credits is also very similar to the average annual cost of health care services consumed by the uninsured: about $2,500.