The National Academy for State Health Policy will continue to monitor and report on the proposed legislation as it moves through Congress and the SBMs as they begin the groundwork necessary to implement the proposals.
Typically, consumers who underestimate their incomes and receive more PTCs than they should have are subject to a financial penalty of up to $2, 700 for incomes up to 400 percent of FPL. There is no penalty cap for individuals earning above 400 percent FPL. The proposal recognizes the unprecedented unpredictability of many individuals' income in during the pandemic and waives penalties for the 2020 tax year. Concerns about excessive penalties and income miscalculations in 2020 were raised by SBM leaders in a letter sent to the Treasury Department and Internal Revenue Services (read their letter here). Congressional committees are currently finalizing legislative language and could vote as soon as early March. If passed, the federal government and the SBMs will need to work at a rapid pace to make the policy and system changes necessary for implementation. SBM officials are also making plans to adopt changes that will enable access to more affordable coverage for the populations they serve.