Subtitle “E” of title I of Senate healthcare bill has following sections.

PART I—PREMIUM TAX CREDITS AND COST-SHARING REDUCTIONS

SUBPART A—PREMIUM TAX CREDITS AND COST-SHARING REDUCTIONS. 

Sec. 1401. Refundable tax credit providing premium assistance for coverage under a qualified health plan.  This sections discussed the tax credit offered to individuals with income less than 400% of the federal poverty guidelines.  HHS Secretary is also required to commission for a follow up study on affordability of health premiums to individuals.

The bill bars any benefit to illegal aliens and also does not permit anyone to take deductions based on illegal aliens.

Sec. 1402. Reduced cost-sharing for individuals enrolling in qualified health plans.  An individual in low income group will have reduced cost sharing including reduction in out of pocket of expense.  The HHS secretary will have jurisdiction in ensuring proper implementation of cost reduction.  The reduction in cost could be upto 90% for people living closer to poverty line.

The section further bans extention of these benefits to illegal aliens and also to those who might be claiming illegal aliens as part of their family.

SUBPART B—ELIGIBILITY DETERMINATIONS
Sec. 1411. Procedures for determining eligibility for Exchange participation, premium tax credits and reduced cost-sharing , and individual responsibility exemptions.  The section provides criteria and process for eligibility determination for tax benefit or reduction in cost sharing.  Each individual will be required to provide immigration status.  Those claiming cost sharing must also provide proof of income, family size.  If a person is employed and the employer does provide minimum essential coverage, then employee contribution to the plan will be compared to the cost sharing through exchange program.

The Secretary may create an infrastructure for ease of validation of eligibility for cost sharing and tax credit.  As expected, there is penalty for mis-representation of information.

Sec. 1412. Advance determination and payment of premium tax credits and cost-sharing reductions.  Issuer may be able to petition for advance payment of the credits or premium reductions.  State however will have the flexibility to separately provide any credit or subsidy if so they desire.

Sec. 1413. Streamlining of procedures for enrollment through an exchange and State Medicaid, CHIP, and health subsidy programs.  Secretary shall implement standard and easy to use forms for processing and management of verification and reimbursement process to reduce the bureaucratic costs.  States may be provide subsidy for developing such programs.

Sec. 1414. Disclosures to carry out eligibility requirements for certain programs.  Bill will allow various government organizations to share information for adminstration of tax subsidies etc for individuals.

Sec. 1415. Premium tax credit and cost-sharing reduction payments disregarded for Federal and Federally-assisted programs.  The subsidy or rebate shall not considered as income or available resource.

PART II—SMALL BUSINESS TAX CREDIT

Sec. 1421. Credit for employee health insurance expenses of small businesses.   An employer with less than 25 full time employee will be provided subsidy for providing health benefits on a sliding scale of number of employees.