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Thu 23 Jan, 2014 05:05 pm
How will healthcare subsidies work? I was under the impression that the subsidies would be administered through an income tax credit. But I recently read that the insurance companies will bill the US Treasury for any subsidy applied to the annual premium.
@Blackspeare,
The subsidy or the advanced premium tax credits are monies paid from the government to the insurance company on behalf of the consumer. You can either choose to use this amount to lower your monthly premium from the insurance company or pay the bill yourself all year then receive the whole amount upon doing your tax return as a refund. The amount of your subsidy is not counted as taxable income.
Hope that helps!
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