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Let’s break down the three terms:
Why does this matter?
The House Republicans introduced the American Health Care Act (AHCA), the week of March 6, 2017. In it they propose replacing the Advance Premium Tax Credit (APTC), which is the tax credit mechanism used in the ACA, with a refundable, advanceable tax credit. It’s likely you’ll be hearing much more about the new tax credit as the AHCA makes it way through Congress.
The IRS’ web page describing refundable and non-refundable tax credits is quite helpful. And for an historical perspective on the use of tax credits to encourage adoption of healthcare coverage, this Forbes article provides good context and further explanation (apologies in advance for the advertisements).
Covered California is wholly self-financed. Covered California no longer uses federal start-up funding, and will not be using any state funding. Covered California’s operations are funded by the per-policy-sold fee it charges carriers.