Health Care Insurance

HealthCare Insurance




Affordablehealth care services are an important aspect of humans. The majorityof the American tax filer’s population depends on moderate income.As such, the premium tax credit makes it affordable for the moderateincome dependent to purchase for health insurance coverage. As such,the system appears affordable to American People. The annual premiumspose the lowest-cost purchase that does not surpass the 9.5 percentof the total household income (IRS Health Car Tax Tip, 2014).

Backgroundand Landscape of Tax Credit

Taxcredit for health insurance comes with the advantage of applicantsbeing refunded. The tax filer’s encounters with premium health caresystem offer them the possibility of benefiting from the creditanytime of the year even if the tax filers have minimal state taxliability (Congressional Research Service, 2014).


Obama`sadministration should consider divergent strategies that could offerreduced spending on health care insurance. Firstly, Obama`sadministration could consider offering subsidies on the pricing ofdrugs and public health facilities. Secondly, more funds can beallocated to Medicaid and CHIP (Children`s Health Insurance Program).


Havingvaried ideologies of PTC, the system functionality is easier for anenrolled member. Whereas Obama`s approach to a tax credit oninsurance premiums is effective, having affordable health carethrough subsidized pricing on drugs can effectively oust the costincurred. Its effectiveness in Singapore has witnessed the governmentpaying for direct subsidies for polyclinics and public hospitals, ina bid to reimburse a portion of the costs incurred in treatingpatients (Haseltine, 2013). Subsidizing these cost would imply areduced cost on all aspects covered notably access to cheaperservices and reduced drugs cost, to name a few. Access to subsidizedpricing for the products would mean that insurance companies willhave reduced premiums for the health care insurances. Obama`sadministration could follow a hybrid structure of Casemix and grantswhere the method classifies and describes the provider`s output.


CongressionalResearch Service. (2014). HealthInsurance Premium Credits in the Patient Protection and AffordableCare Act (ACA)

IRSNationwide Tax Forum. (2014). TheHealth Insurance Premium Tax Credit for Tax Year


Haseltine,W. (2013). AffordableExcellence: The Singapore Health care Story.

WasingtonD.C: Bookings Institutional Press.