From the August 2009 issue of Ceridian Connection.

Subsidies for lower income households
To make the exchange even more attractive, the legislation would provide premium subsidies to lower income individuals and families to make coverage more affordable. There is broad agreement among Republicans and Democrats that achieving the goal of affordable coverage for all Americans will require substantial new federal government subsidies for lower income households -- delivered either through refundable tax credits or direct payments.

Congressional committees are debating the precise cutoff levels for subsidy eligibility, but it's likely to come out at either 300 percent ($63,000) or 400 percent ($88,000) of the poverty level for a family of four. Set too low and the exchange will not pick up enough of the population of the uninsured to make a dent in the 47 million figure. Set too high, there is the danger of creating a new middle-class entitlement that could bankrupt the U.S. Treasury in future years.

Nevertheless, there is now a consensus that achieving "universal coverage," as the goal is termed, requires a broad program of financial subsidies to help people afford health coverage.

Four consensus issues	SPACE	Four roadblocks to reform
Insurance market reform	SPACE	Financing healthcare reform
Creation of a health insurance exchange	SPACE	Saving for out-of-pocket health costs: FSAs in the spotlight
Subsidies for lower income households	SPACE	Public plan option in the health insurance exchange
Support for wellness and prevention	SPACE	Employer mandate