An estimated 17 million people who are currently uninsured or who purchase coverage on their own will be eligible for premium tax credits under the Patient Protection and Affordable Care Act next year, according to a Kaiser Family Foundation report.
Under the reform law, people who earn between 100 percent and 400 percent of the federal poverty level may be eligible for tax credits or subsidies to help cover the cost of coverage purchased through the exchanges. People who are eligible for other types of health plans such as Medicaid or coverage through employer-sponsored health insurance generally don't qualify for tax credits.
Tax credit amounts depend on family income and the cost of health insurance in the area where the person applying for coverage lives, according to the report. The number of people who can receive credits varies from state to state, from 1.9 million in
However, it will take some time for enrollment in the next exchanges to ramp up, according to the report. The Congressional Budget Office estimates 7 million people will enroll through the exchanges in 2014, including 6 million who will receive tax credits. By 2016, the CBO expects the number of people receiving tax credits through the exchanges to triple.
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