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The Baucus Individual Health Insurance Mandate: Taxing Low-Income and Moderate-Income Workers

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Topics: Health Care Reform | Individual Coverage | Legislation (National)

This Heritage Foundation report analyzes the potential impact of the individual mandate in the Baucus health care plan.

From the Report:

Families with incomes below four times the FPL that are ineligible for Medicaid (roughly, those with incomes between $29,330 and $88,200 for a family of four) would be eligible for premium subsidies in the exchange. The subsidy is calculated so that the net cost of a standard plan (details unspecified) with an actuarial value of 70 percent (70 percent of what is unspecified) would range from 3 percent of income at the lower end (1.33 times FPL) to 13 percent of income for those with incomes between three and four times the FPexit disclaimer small iconL. These subsidies would not be available to those with access to employer-sponsored insurance, except in the case described above. In companies with more than 50 employees that do not offer employer-sponsored insurance, the average cost of the premium subsidy would be charged back to the employer as a tax--a portion of which would be inevitably passed on the employee in the form of lower wages. 

Full report: http://www.heritage.org/Research/HealthCare/bg2325.cfmexit disclaimer small icon

Heritage Foundation. (2009). The Baucus individual health insurance mandate: taxing low-income and moderate-income workers. Book, Robert A.; Nell, Guinevere; and Winfree, Paul L.


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