AAPD Asks Treasury Department to Clarify ACA Tax Credit Subsidies for Dental Plans

The AAPD along with the ADA, National Association of Dental Plans, and Delta Dental Plans Association recently wrote the U.S. Treasury Secretary asking for a revision in IRS regulatory interpretation of premium tax credit subsidies for pediatric dental insurance coverage under the Affordable Care Act (ACA).  Due to current IRS regulations, tax credits for low-income families to support the purchase of stand‐alone dental plans (SADPs) within ACA Health Insurance Marketplaces are available only in very limited circumstances. The IRS calculates a consumer’s tax credit based on the cost of a "benchmark" plan—defined as the second‐lowest cost silver plan in a specific region. If the benchmark silver plan does not include pediatric dental coverage, the federal tax credit amount families receive will not include the cost of pediatric dental coverage. The groups recommended the following:
 
"To allow families to choose benefits that best meets their medical and dental coverage needs, we urge the IRS to revise its calculation of tax credits prior to the release of guidelines for filing 2014 tax returns to assure consumers receive tax credits based on all 10 essential benefits (whether contained in two policies or one) in all states."
 
 
For further information, please contact AAPD Chief Operating Officer and General Counsel C. Scott Litch at slitch@aapd.org.
 
 


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