Sherrill, Suozzi Lead Provision in COVID-19 Relief Package to Protect Healthcare Affordability During Pandemic

Sherrill, Suozzi Lead Provision in COVID-19 Relief Package to Protect Healthcare Affordability During Pandemic

 

Washington, DC — Representatives Mikie Sherrill (NJ-11) and Tom Suozzi (NY-3) today announced that their legislation to keep healthcare affordable for working families was included in the COVID relief package. The legislation offered by Reps. Sherrill and Suozzi would pause the IRS clawback of Advanced Premium Tax Credits (APTC). The APTC provides financial assistance to Americans so they can purchase healthcare on the Marketplace.

 

“During the pandemic, so many workers have seen their livelihoods upended and their paychecks fluctuate,” said Rep. Sherrill. “This includes the workers on the front lines receiving hazard pay or putting in extra hours. Americans who have taken advantage of tax credits to purchase healthcare should not be penalized for the economic turmoil we have faced. Our legislation keeps money in the pockets of workers and ensures that their healthcare remains affordable at this critical moment.”

 

“The pandemic has been tough enough. The last thing people need is another bureaucratic burden,” said Rep. Suozzi. “This legislation will provide economic security for millions while giving them the comfort of knowing they have access to health care.”

 

Under the Affordable Care Act (ACA), consumers may choose to enroll in any qualified health plan offered in the Marketplaces and may receive financial assistance through premium tax credits, which are based on income and family size. Advance payments of premium tax credits (APTC) play an important role in ensuring that health insurance coverage is affordable for consumers.

 

An individual receiving an APTC to help with the cost of health insurance coverage is required to file an income tax return to reconcile the advance payments with the credit to which the individual is entitled for the taxable year. If the APTC amount exceeds the amount of credit to which the individual is entitled, the excess is subject to recapture/repayment.

 

This legislation provides that for the taxable year beginning in 2020, no excess advance payment is subject to recapture. All taxpayers who receive the benefit of advance payments of the premium assistance credit are still required to file an income tax return for the taxable year and reconcile the advance credit payments. Because the filing season starts this month, any payments made will be refunded. Individuals owed additional tax credits due to loss of income will receive the additional money.

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