The Trade Adjustment Assistance Health Coverage Improvement Act was passed as part of the American Recovery and Reinvestment Act of 2009. The Health Coverage Tax Credit (HCTC) changed as a result of this new law.
1.
HCTC Reimbursement Credits are available in 2009
Newly-enrolled participants can now request to receive reimbursement for premiums paid to qualified health insurance while eligible and enrolling in the monthly HCTC Program. If the request is approved, participants will receive the reimbursement as a credit on their monthly HCTC account. To find out more, click on the link below. (the Reimbursement Request)page.
HCTC: Requesting Reimbursement
2.
The HCTC pays a greater portion of your health insurance costs.
In May 2009, the tax credit increased from 65% to 80% of qualified health insurance premiums, allowing participants to pay only 20% for health insurance each month.
3.
Training and waiver requirements changed for certain TAA recipients. Thus, it is easier to continue to be eligible for the HCTC.
4.
COBRA benefits have been extended for HCTC-eligible individuals.However, these benefits have been extended till December 31, 2010. Still, Employers are responsible for extending COBRA benefits for these individuals.
5.
The new 65% COBRA Premium Reduction Program can affect an individual's eligibility for the HCTC during the same month.
If an individual receives a 65% COBRA Premium Reduction through your former employer that individual will not be eligible to receive the HCTC during that same month.
If an individual wishes to receive the HCTC and are already recieving the COBRA Premium Reduction, that individual can switch by opting out fo the COBRA Premium Reduction program prior to registering for the monthly HCTC Program
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