ACA Replacement Proposal Would Limit Tax Credits

House Republican leaders want to limit health care tax credits to those who earn less than certain amounts, according to a report Monday in Politico.

Health care tax credits would begin phasing out at $75,000 for individuals and $150,000 for households. The credits would disappear completely for individuals who earn more than $215,000, with a cap of $290,000 for joint filers.

The latest proposal for replacing the Affordable Care Act also removes a controversial cap on the tax exemption for employer-sponsored health insurance. The ACA replacement proposal also would keep taxes on prescription and over-the-counter drugs, health savings accounts and tanning services.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].