Recent Tax Changes May Affect Financial Assistance for Health Coverage

Recent changes to the federal tax law may have a specific new effect on New Yorkers who apply for coverage through the state’s health insurance marketplace, New York State of Health (NYSOH).

A specific deduction for qualified tuition and related expenses will no longer be allowed in 2018.  This means that new and renewing applicants will no longer be able to lower their countable income by the amount they qualified for under this deduction when they sign up for health coverage on NYSOH.  In previous tax years, ending with 2017, taxpayers could lower their taxable income by up to $4000. This could affect the eligibility of some New Yorkers for programs that help pay for health insurance.   These programs include subsidies for Qualified Health Plans, Medicaid, Child Health Plus, and the Essential Plan.

The deduction allowed up to $4000 in qualified expenses, which meant that New Yorkers who qualified in the past could reduce their income by this amount, potentially making them eligible for a more generous health insurance program. Although the qualified tuition and related expenses deduction actually expired at the end of 2016,  On February 9, 2018, the Bipartisan Budget Act of 2018 extended this deduction retroactively to the end of 201. However, the deduction is no longer available as of January 1, 2018.

If you need tax advice on this subject, you can use the IRS resources on qualified education expenses, here and here.  Free tax assistance is available to qualified taxpayers through the Volunteer Income Tax Assistance program.  There is more information on the program here.

For free help with a New York State of Health application for health insurance, you contact the Community Service Society Navigator Network, either by calling 1 888 614 5400 or emailing

Today is the DayIf you currently have a Qualified Health Plan (QHP) through the New York State of Health (NYSOH), New York’s official health insurance Marketplace, you can renew your coverage for 2018 starting TODAY.

Retuning consumers must renew their coverage between November 16, 2017 and December 15, 2017 to avoid a gap in coverage.

You can renew your coverage on your own by visiting the NYSOH website. If you or someone you know needs help renewing coverage, Navigators are available to assist! Please call 888.614.5400 for in-person enrollment assistance in your area.

Red AlertYesterday afternoon, the Senate released a tax bill that would eliminate the penalty for not having health insurance established under the Affordable Care Act (ACA). The non-partisan Congressional Budget Office (CBO) estimates that repealing the individual mandate would cause 13 million people to lose their health insurance by 2027, including 4 million in the first year alone.

Without the individual mandate, younger, healthier people would lack incentive to purchase health insurance and would exit the individual market. This means that the people that remain in the individual market will be older, in poorer health, and require more expensive care, which will increase premiums. The CBO estimates that premiums would increase by about 10 percent in most years between 2018 and 2027, which could make it more difficult for people to afford health insurance in the future.

Congress could vote on this bill as early as tomorrow. Please call 202.224.3121 and tell your member of Congress to vote no on this bill that could hurt millions of people’s access to health care. You can choose to be connected to your Senator or your Representative.

Information on New York Targets:

  • Representatives Zeldin, King, Donovan, and Stefanik have all said that they will vote “NO.” Please thank them and encourage them to stand strong!
  • Representatives Faso, Tenney, and Katko are leaning toward voting “NO.” Please help push them to a definitive “NO” vote.
  • Representatives Collins and Reed are supporting the bill.

PreschoolersGuest post by Ben Anderson, Director of Health Policy at Children’s Defense Fund-NY. Here we are 39 days and counting since the September 30th deadline for Congress to fund the Children’s Health Insurance Program (CHIP), and yet families of the 350,000 New York children who depend on CHIP for coverage are still waiting for Congress to act. Sadly, once again children are being held hostage to political debates.

Created specifically for children, CHIP’s benefits and provider networks are designed to ensure children in working families who are not eligible for Medicaid have access to child-appropriate services, providers, specialists, and facilities. Despite bipartisan support for a strong, five-year extension of CHIP in both the House of Representatives and the Senate, debate continues about how to pay for CHIP and the extension of other important health programs.

Last week, the House of Representatives passed the Championing Healthy Kids Act, a bill that includes the same strong, bipartisan five-year extension of CHIP that the House Energy and Commerce and Senate Finance Committees approved and that most child health advocates strongly support. However, the bill passed by the House pays for the extension of CHIP and other critical health programs for vulnerable populations with offsets that would cause undue harm to children and families. These provisions passed over the objections of many in the House and are jeopardizing the bill’s passage in the Senate.

The sad irony is that Congress is bickering over how to fund CHIP and other programs in the bill, when the total cost for these programs is merely 1% of the amount Congress will add to the deficit to provide tax cuts to the wealthiest individuals in America. The senselessness must end. We’re so close to the finish line. There is bipartisan support for CHIP. Senate and House members, Republicans and Democrats alike, agree on what we need to do for children’s health. Congress needs to finish its homework and reach a bipartisan consensus on funding CHIP.