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 editor in chief, magazine, 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].