Healthcare Business News

White House backs change to reform law's income definition

By Jessica Zigmond
Posted: October 25, 2011 - 6:00 pm ET

The Obama administration on Tuesday lent its support to an upcoming House bill that would change a tax-related provision included in the Patient Protection and Affordable Care Act.

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In a Statement of Administration Policy, the White House said it supports passage of the measure that would change the definition of modified adjusted gross income in the Affordable Care Act to include both taxable and nontaxable Social Security benefits. That definition will be used to determine eligibility for Medicaid, the State Children’s Health Insurance Program, and tax credits and cost reductions for the state insurance exchanges beginning in 2014.

Earlier this month, the House Ways and Means Committee approved the legislation that Rep. Diane Black (R-Tenn.) introduced this summer. According to a summary, the new definition better aligns with the income requirements for other social welfare programs, such as public housing assistance.

The lower chamber is expected to vote on the legislation Thursday.

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