Government
Health insurance tax credits' flaws dampen interest
NEWS IN BRIEF — Posted Oct. 18, 2004
Burdensome eligibility requirements have kept health care tax credits that are available to displaced workers from catching on more rapidly, according to a new report from the Government Accountability Office.
Fewer than 20,000 people claimed the tax credits in 2003, amounting to $37 million in benefits. Sixty-five percent of that group claimed the credit on their tax returns, rather than receiving it in advance.
Problems with the tax credit include an "enrollment process that is fragmented and complex and requires individuals to meet tax, labor and health criteria before they become eligible," the report states. Individuals also have to pay the full cost of premiums for three to six months while applying for the credit.
The poor performance of the credits, which were meant as a demonstration program, has been a sticking point for proponents who want to expand access to them.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/10/18/gvbf1018.htm.
