

Continuation of Research on Consumer Directed Health Plans: HSA Simulation Model Refinement . B. 2006 State of the Union Simulation
The following example illustrates how the SOTU subsidies were simulated. Suppose Joe is eligible for a $500 low-income premium tax credit. 18 After the credit, his net premium is $1,500 - $500 = $1,000. Assuming his income tax rate is 20 %, he receives an income tax deduction on the net premium of $1,000 * .20 = $200. He also receives an em