An indication of the magnitude of the impact federal health reform will have in Oregon appeared in a new report released today, which revealed that hundreds of thousands of Oregonians will be eligible in 2014 for a new tax credit worth $1.7 billion.

When it takes effect that year, an estimated 444,400 Oregonians who now struggle to afford health coverage will be eligible for the federal tax credit, according to Families USA, a national health care consumer group.

That’s one in eight Oregonians under the age of 65, according to Janet Bauer, policy analyst with the Oregon Center for Public Policy. Nearly all Oregonians age 65 or older are already eligible for health coverage through the public program Medicare.

The tax credit will help low- and middle-income families pay for health insurance, Families USA said. Nearly two-thirds of those who will benefit are families earning above 200 percent of the federal poverty level ($44,100 for a family of four in 2010).

But because the tax credit applies on a sliding income scale, more than half (57 percent) of the estimated $1.7 billion in tax benefits that will flow to Oregonians in the credit’s first year will go to help low-income households, according to the report. “The tax credit is well targeted, recognizing that most of the uninsured have low incomes, but also taking into account that the cost of health insurance in the private market is practically prohibitive for many middle-class families,” said Bauer.

The Oregon Center for Public Policy is a non-partisan research institute that does in-depth research and analysis on budget, tax and economic issues. The Center’s goal is to improve decision making and generate more opportunities for all Oregonians.