Student loan debt in the EmpireState is the sixth highest in the country at $6,810 per capita.(Photo: Shutterstock)

Amid a pandemic-stricken nationstruggling to find ways to reopen, massive unemployment andemployees lucky enough to have jobs hanging onto them as tightly aspossible, New York health care strategists are floating a plan tooffer health insurance tax credits assistance to loan-saddledcollege graduates who have no overage or fear of losing what theydo have.

As envisioned in a new reportreleased last week by the United Hospital Fund, recent college graduates couldbe allowed to deduct the monthly costs of their student loanpayments from their total adjusted income as calculated under theAffordable Care Act. 

Related: Student loans still worry borrowers in coronaviruscrisis

Reducing that figure could meanthe borrowers are eligible for lower premiums and additionalsubsidies under the ACA. 

The Healthwatch report, "A Gift for 2020 Grads: Enhanced Premium Subsidiesfor Student Loan Debtors," noted that more than 2.8 million NewYorkers filed for unemployment insurance between March and June,and in some areas unemployment is at almost22%. 

Student loan debt in the EmpireState is the sixth highest in the country at $6,810 per capita; in2016, the report said, there were more than 2.8 million studentloan borrowers. 

"On top of diminished jobprospects, many new graduates are losing school-sponsored healthcoverage, will be aging off their parents' policies, or might havelost coverage when a parent lost a job," the report said, adding tothe estimated 410,000 uninsured New Yorkers between 19 and34.

Because New York maintains itsown marketplace, New York State of Health, it can roll the studentdebt calculations into its formula for pricing health care planswithout having to rely on the federal plans other states relyon. 

The report was authored by PeterNewell, director of UHF's Health Insurance Project, said theprogram could offer some assistance to recent graduates strugglingto ensure access to care and still pay their bills.

"This modest program targeted atNew Yorkers with student loan debt would send a strong message indifficult and uncertain times, helping young borrowers stay currentwith their insurance payments and stay healthy by enrolling incoverage," said Newell in a statement announcing theproposal.  

ACA guidelines set tax creditsbased on a consumer's modified adjusted gross income. Individualsmaking between 200% and 400% of the federal poverty level ($24,980to $49,960 for an individual) are eligible for credits ranging from6.54% to 9.78% paid to health plans to help defray the total costof coverage. 

The UHF report envisions multiplescenarios for borrowers depending on their debt and the health careplans they select, although anyone carrying student debt would seesome relief. 

"The biggest beneficiaries wouldbe borrowers with salaries that push them past the current ACAceiling for subsidies, combined with high monthly debt payments,"the report said.

As an example it cited apost-graduate earning $60,900 a year, too high for a ACA taxcredit, but paying $800 a month in loan debt; such an individualcould see his monthly insurance premium cut by 35%

Lower-paid workers eligible forACA subsidies and carrying less debt would also see reducedpremiums, but not as much.  

 "New York State facesdaunting challenges from the COVID-19 pandemic and the resultingeconomic damage," said Newell. "State policymakers will have tomake choices among many competing and dire needs, but a targetedapproach to young adults starting out their careers — a valuableaddition to the individual market risk pool — should be on thetable, and could soon prove its worth." 

Read more: 

• CMS seeks to tighten ACA subsidyrules
• Unsubsidized ACA enrollment down by more than amillion
• Americans with student debt owe $24,155 onaverage