In the 1990s, there was plenty of teeth-gnashing by welfare reform opponents over changing the funding structure for cash assistance, implementing work requirements, and creating time limits – rhetoric that sounds eerily similar to much of the health reform coverage today.
Mostly absent from the welfare discussion was the role that earned income tax credits (EITC) would play in reform. Similarly, in the current health care debates over Medicaid changes there is a lack of any reference to proposed tax credits.
There is plenty of room for debate on the structure of tax credits, their generosity, who they should be available to, and under what conditions someone might take them. But not referencing them at all when discussing potential Medicaid coverage “losses” is simply misleading.
Tax credits will be available in states that transition individuals out of Medicaid expansion and into private coverage. Tax credits will be available for uninsured individuals in states that rejected Obamacare’s Medicaid expansion.