For a starting gauge of understanding, we have to look at what exactly does the current health coverage tax credit does. It is a credit given to eligible individuals to ease the burden of health insurance costs. Currently, this credit covers 72.5 percent of qualifying health insurance premium costs. However, the nature of this credit is not permanent; H.R. 3912 is on a mission to change that.
The brush strokes of this legislation paint the picture of the “Bob von Schwedler Permanent Health Coverage Tax Credit Expansion Act”. The canvas? The “eligible” residents of the United States. So, what makes a resident “eligible”? As written in the bill, an eligible individual is one who has paid a premium for a month’s worth of qualified health insurance, and doesn’t have other specific coverage or isn’t serving a prison sentence.
The crux of the issue that this bill is tackling revolves around the affordability of health insurance. Health care costs can be a substantial concern, and it often dictates who receives necessary medical care and who doesn’t. The health coverage tax credit that is currently in place offers some relief, but the push for permanency is an express move to cement that relief into law.
If you strip away the layers on this bill, it’s not just about asserting permanency; it also seeks to increase the credit from its current 72.5 percent up to 80 percent. That’s an extra 7.5 percent edge off the cost of health insurance premiums for the qualifying residents, coming directly off their tax bill.
H.R. 3912 is not quite a finished act yet. With its introduction to the House, the bill has been referred to the Committee on Ways and Means – the traffic cops of tax-related legislation. They’ll mull it over and weigh its merits before deciding whether to put it to a vote in the House. If it then passes the House, it will need to be approved by the Senate before heading to the desk of the President. This is a lengthy procession, yet it is the machinery of our democratic process.
How is this all going to be paid for? Though the bill doesn’t dive into specifics, it’s nestled in the fact that this is a tax credit. That means that the government would be collecting less in taxes from those eligible for this credit. The funding would come primarily via the government’s budget, and consequently, taxpayers’ pockets.
The main beneficiaries of this legislation would be lower-income individuals and families who qualify for the credit. By making the credit permanent and elevating it to 80 percent, the beneficiaries would have some certainty, reliability, and added relief in their health care costs.
H.R. 3912 fits in the larger dialogue on the healthcare landscape. A persistent and ubiquitous issue is the high cost of healthcare and health insurance. This piece of legislation signifies a clear intention to address that discussion by cementing the support for lower-income citizens and inching closer to making health insurance more affordable.
In conclusion, this congressional action is an attempt to push forward an uphill task. The hard truth is that in this story about health care affordability and better tax credits for health coverage, there’s no ‘happily ever after’ guaranteed. The bill still needs the nod from the Ways and Means Committee, the entire House, the Senate, and the President. Until then, we’ll need to sit tight with a firm grasp on hope.
