HCTC: Trade Adjustment Assistance Extension Act of 2011
On October 21, 2011, the President signed the Trade Adjustment Assistance Extension Act of 2011 into law. This bill increased the amount of the Health Coverage Tax Credit and expanded the population that is eligible to receive it. The following provisions are effective until January 1, 2014:
- Tax Credit Percentage increased from 65% to 72.5%
- In January 2012, the Monthly HCTC began paying 72.5% of qualified health insurance premiums and participants pay 27.5%.
- HCTC Extended Eligibility for Qualified Family Members
- Qualified family members of TAA recipients or PBGC payees who enroll in Medicare, pass away, or finalize a divorce, are eligible to receive the HCTC for up to 24 months from the month of the event, or until January 1, 2014.
- For more information please visit the qualified family members page.
- Voluntary Employee Beneficiary Associations (VEBAs)
- If you choose a health plan through a VEBA established as a result of a former employer’s bankruptcy, your VEBA will remain qualified for the HCTC. A separate VEBA Attestation Form is no longer required when registering for the monthly HCTC program with a qualified VEBA.
- Extension of COBRA coverage
- TAA recipients and PBGC payees whose COBRA end date is on or after November 20, 2011 are eligible for COBRA coverage extensions through their former employer.
- TAA recipients are eligible for COBRA coverage extensions for as long as they have TAA eligibility or until January 1, 2014.
- PBGC payees are eligible for COBRA coverage extensions until January 1, 2014. If the payee passes away, their spouse or dependents are able to receive an additional 24 months of COBRA, or until January 1, 2014.
- For instructions on how to extend your COBRA coverage, please visit the Update Your Account Information page.
- TAA recipients and PBGC payees whose COBRA end date is on or after November 20, 2011 are eligible for COBRA coverage extensions through their former employer.
- Reimbursement Requests
- Beginning January 2012, monthly HCTC participants are now able to request reimbursement for payments made to qualified health plans while they were eligible and enrolling in the monthly HCTC program. However, due to the anticipated length of time to process reimbursement requests, individuals are strongly encouraged to claim their credit through the Yearly HCTC by filing Form 8885 with their federal income tax return.
- For more information please visit the Reimbursement Requests page.
Return to the HCTC Program home page.
Go to the HCTC Quick References page to view a glossary of terms, frequently asked questions, and additional resources.
Page Last Reviewed or Updated: 04-Aug-2012
