Poor Credit. Bad Credit.

Gov. Schwarzenegger doesn’t get much credit for his plan to to give tax credits for health coverage to middle-income Californians. A new analysis by the California Budget Project concludes the plan wouldn’t help many people and could create the perverse incentive for businesses to drop coverage — rather than increasing it.

Here are the highlights:

  • 70% of Californians between 250% and 350% FPL (the qualifying income for the tax credits) would be disqualified because they have access to coverage on the job.
  • That tax credit only applies to “minimum” coverage — a high deductible plan. If families want more coverage, they don’t get a tax credit for it, which would encourage the use of plans with $10,000 deductibles for families who make $72,275 (for four people) annually.

To see the report, and other things the Budget Project has written, visit www.cbp.org.

Health Access California promotes quality, affordable health care for all Californians.

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