Historic law will provide over $3 billion in tax credits, help Mass. seniors save over $1 billion in drug costs
WASHINGTON, D.C. – Representative Edward J. Markey (D-Mass.), a senior member of the Energy and Commerce Committee--one of three committees with jurisdiction over health care policy—today released an analysis of the health care reform law showing that the Commonwealth will receive approximately $7.7 billion in federal support for health care. The analysis was performed by the House Energy and Commerce Committee.
Rep. Markey with President Obama and House Speaker Nancy Pelosi moments after President Obama signed the historic health care reform bill into law.
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“This health care law is the right prescription for the Commonwealth and now we have the numbers to prove it,” said Markey. “From saving seniors money on their prescription drugs to providing over a billion dollars in tax credits for small businesses, this bill puts families—not insurance companies—back in control of their own health care.”
“This new law is a win-win for our country and our community, helping to reduce the deficit while helping families save money on health care costs by providing the largest middle-class tax cut for health care in history. This landmark health care reform law will not only expand access to coverage and end insurance company abuses like denials of coverage based on pre-existing conditions, but it will also put a little more wealth back in the Commonwealth.”
In Massachusetts, the heath care reform law will:
• Provide families with tax credits worth $2.4 billion to help purchase health care coverage.
• Provide $2.3 billion in increased federal funding for Medicaid.
• Provide small businesses with $1 billion worth of health care tax credits.
• Fill the doughnut hole, saving seniors $1.6 billion in drug costs.
• Provide $400 million in new funding to community health centers.
The law provides the largest middle-class health care tax cut in history to families with incomes up to $88,000 for a family of four who do not receive health care coverage through their employer. These tax credits are worth an average of $5,500 per a year and will help families purchase health care coverage, for a total of $2.4 billion in tax credits for Massachusetts residents.
Massachusetts will receive an additional $2.3 billion in federal funding for Medicaid to support our state’s early commitment to health reform and expanding coverage to low-income individuals.
Approximately 153,000 small businesses in Massachusetts will also qualify for $1 billion worth of tax credits that will help them cover up to 50% of the cost of providing health insurance to their employees.
For the 81,000 Massachusetts seniors that fall into the so-called Medicare Part D doughnut hole each year, requiring them to dramatically increase their out-of-pocket costs, the health reform law will save Commonwealth seniors $1.6 billion in out-of-pocket expenses. The typical beneficiary would save over $3,000 by 2020.
The 300 community health centers that serve as a cornerstone of Massachusetts’ health care system will receive $400 million in new funding to continue providing vital health care to the poor and medically underserved.
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