Health Insurance Premium Credits in the Patient Protection and Affordable Care Act (ACA) [March 12, 2014] [open pdf - 397KB]
"New federal tax credits were authorized in the Patient Protection and Affordable Care Act (ACA, P.L. 111-148, as amended), to help certain individuals pay for health insurance coverage, beginning in 2014. The tax credits apply toward premiums for private health plans offered through 'exchanges' (also referred to as health insurance marketplaces). ACA also establishes subsidies to reduce cost-sharing expenses. This report describes the eligibility criteria applicable to the premium tax credits and cost-sharing subsidies, and the calculation method for the credit and subsidy amounts. It also highlights selected issues addressed in the final regulation on premium credits."
CRS Report for Congress, R41137