Help me understand the tax credit section of the GOP health plan

Factual Questions
1

I found a copy of the GOP health plan. Here it is: http://rsc.tomprice.house.gov/UploadedFiles/Section_by_Section_EPFA_Final.pdf

Sorry, but I don’t fully understand the part about the tax credits. Are the credits to be used to offset existing plan costs (from say, work)? Purchase new plans? I’m confused. What if I don’t file a tax return? I do, but I am thinking of others.

Can someone help explain this?

Thanks.

2

It looks like if you meet the income requirements, you’ll get a tax credit each year to buy health insurance. It only applies if you don’t have other insurance.

3

Found another summery: http://rsc.tomprice.house.gov/UploadedFiles/RSC_EPFA_Three-Page_Summary--FINAL.pdf

Looks like you are right, it is to buy health insurance.

$5000 a year for a family does not seem like a lot to buy insurance with.

4

It’s a refundable credit. Unless their terminology is off, that means that you get it even if you don’t owe any money. So individuals who are eligible could file a tax return (showing zero tax owed) in order to get the credit.