How Far Can Tax Credits Reach?
o analyze the potential impact of proposed tax credits on the individual market, HSC identified people likely to qualify for a credit based on their current insurance coverage and income.9 An analysis of CTS data suggests that an estimated 28.6 million people without access to employer-sponsored or public insurance would be eligible to receive a credit under the REACH proposal. Most (88%) of these people, or 25.2 million, also would receive a credit under the Bush plan. About 80 percent of those eligible for a credit under either plan are uninsured (the remaining 20 percent already have individual insurance coverage). Looking only at the uninsured, the REACH bill would provide a larger average credit per family: $1,535, compared with $1,155 for the Bush plan. Consequently, the REACH proposal would provide a larger average subsidy of the estimated premium for individual insurance: 54 percent, compared with 43 percent for the Bush plan. Even if the credit provides a substantial reduction
