610,000 NJ Residents Could Receive Health Insurance Premium Tax Credits Next Year

WASHINGTON, D.C.— A report released today by Families USA says that more than 610,000 New Jerseyans will be eligible for premium tax credits next year to will help them pay for health coverage.

Families USA is a national nonprofit, non-partisan organization dedicated to the achievement of high-quality, affordable health care for all Americans. The report  includes county-by-county data, which reveal how many New Jersey families in different income brackets (ranging as high as $ 94,200 for a family of four) will soon be protected from having to spend more than a set percentage of their income for health coverage.

Under the terms of the Affordable Care Act, these premium tax credits take effect in January 2014, following an open enrollment period that begins in October of this year. The tax credits will be determined on a sliding scale based on income. People with the lowest incomes will receive the largest tax credits.

The tax credits will help New Jerseyans purchase health insurance that meets their specific needs in the new health insurance marketplace, sometimes called the “exchange,” which is being set up in the state. The tax credits will flow directly to the health plans in which families or individuals enroll, offsetting the total cost of plan premiums.

In terms of statewide eligibility, the report, “Help Is at Hand: New Health Insurance Tax Credits in New Jersey,” says:

The report provides the same data on eligibility for counties or county groupings, based on how data are presented by the U.S. Census Bureau, across the entire state of New Jersey. For example:

The report also provides specific data on the employment status and age of eligible New Jerseyans, showing that an overwhelming number of those who will be eligible for premium tax credits will be in working families, and that young New Jerseyans (ages 18-34) make up a large proportion of those who will be eligible for assistance.

“The tax credit subsidies are a game-changer: They will make health coverage affordable for huge numbers of uninsured families who would have been priced out of the health coverage and care they need,” said Ron Pollack, Executive Director of Families USA.

“It has only been three years since the Affordable Care Act was signed into law, but millions of Americans are already seeing the benefits,” U.S. Rep. Frank Pallone (D-NJ) said today. “I’m proud to be an original author of the law, and I look forward to the tax credit taking effect next year and hundreds of thousands of New Jersey’s working families finally being able to have some peace of mind when it comes to affording their health care and getting the coverage they need.”

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