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Consumer group says nearly 3.5 million Californians will be eligible for health reform tax credits Posted: October 5th, 2010

By Maryalene LaPonsie

In 2014, federal health reform laws mandate that every nearly every U.S. citizen be covered by health insurance. To make medical coverage more affordable, the government will roll out tax credits for those purchasing a health plan through state administered Health Insurance Exchanges.

Families USA, a consumer advocacy group, estimates that nearly 3.5 million residents in California will be eligible for the credits which target working families. A study commissioned by the group determined:

  • Two-thirds of eligible families have incomes at or above 200 percent of the federal poverty limit
  • Of those eligible for tax credits, 94 percent are from working families
  • Approximately half of those eligible are currently uninsured
  • The tax credits will reduce Californians' income tax bill by $13.8 billion in 2014

The health reform law grants tax credits on a sliding scale for families with incomes up to 400 percent of the federal poverty level. For 2010, the poverty level for a family of four is $22,050.