HCTC: Information for Health Plan Administrators (HPAs)
Important Update: The legislation that authorizes the Health Coverage Tax Credit (HCTC) expires January 1, 2014 and the tax credit will no longer be available. Please visit the HCTC Expiration page for more details and other important dates affected by the monthly HCTC program expiration.
Health Plan Administrators (HPAs) are vital to the success of the HCTC program. Your role as an HPA can vary, depending on your level of involvement in helping eligible individuals receive the tax credit. Below you will find information about how you can help individuals receive this important tax credit.
Enroll To Receive Monthly HCTC Payments
The monthly HCTC program helps individuals pay their health insurance premium each month. Once registered, HCTC participants will receive a monthly invoice from the HCTC Program for 27.5% of their health insurance premium. The HCTC Program will then add 72.5% and send the full 100% premium to the health plan. However, individuals can only receive the monthly HCTC if their HPA is enrolled to receive monthly payments from the HCTC Program.
Individuals can only receive the Monthly HCTC if their health plan is enrolled to receive monthly payments from the HCTC Program. Please review the HPA Operations Guide for full instructions to help you complete this simple enrollment.
Complete Ongoing Responsibilities
When individuals claim the Yearly HCTC on their federal tax return, they must submit supporting documents (such as a health insurance bill, COBRA Election Letter, or substitute letter that has the same information that a health insurance bill contains) to show they have the insurance they are claiming. As an HPA, you can help these individuals if they request information or documentation from you concerning their health coverage.
Returning Funds to the HCTC Program
An HPA can return funds to the HCTC Program for many reasons, including: a member's coverage ended or was cancelled, their premium amount changed, the member changed HPA or Third Party Administrator (TPA), the member is no longer eligible for the HCTC, the member is receiving Medicare benefits, or because an incorrect HPA or TPA was paid.
Prior to returning funds to the HCTC Program, you should:
1. Contact your HCTC HPA Analyst to inform them of the pending return.
2. Fill out the Return of Funds Form in its entirety.
3. Fax copies of the completed Return of Funds Form to your HCTC HPA Analyst with the returned funds.
4. Reference the Return of Funds Form to determine the correct mailing address for the type of funds you are returning. Include a copy of the Returned Funds Form with the check, and send to the appropriate address.
Read the Returning Funds to HCTC Job Aid for detailed instructions.
Return to the HCTC Program home page.
Go to the HCTC Quick References page to view a glossary of terms, frequently asked questions (FAQs) and additional resources.