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HCTC: Latest News and Background

 

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The HCTC helped make health insurance more affordable for eligible individuals and their families by paying a significant portion of qualified health insurance premiums from tax years 2002 through 2013. For information on who was eligible to receive the HCTC, go to the eligibility requirements page

Latest News

  • Tax Credit Expiration: The legislation that authorized the Health Coverage Tax Credit (HCTC)  has expired. The tax credit is not available for tax years after 2013.


Background and History of the HCTC:
Described by some participants as “a lifesaver,” the Health Coverage Tax Credit (HCTC) was a federally funded tax credit that allowed individuals to pay only a portion of their qualified health insurance.  Nationwide, thousands of people were candidates for the program. Some of them were displaced workers who were certified by the Department of Labor as eligible to receive Trade Readjustment Allowances under the Trade Adjustment Assistance (TAA) program. Others were eligible because they received benefits from the Pension Benefit Guaranty Corporation (PBGC) and were 55 years old or older. 

Congress understood that losing one's health coverage could be as distressing as losing one's job or having one's pension taken over.  The purpose of the HCTC was to make health coverage more affordable for these groups of people who otherwise might not be insured.  Please see below for a timeline of the HCTC Program.

  • In 2002, the HCTC began as a ground breaking tax credit program.
  • In August 2003, the HCTC was first made available on a monthly basis.
  • In May 2009, benefits were expanded as a result of the American Recovery and Reinvestment Act (ARRA).  These benefits were set to expire on December 31, 2010.
  • In December 2010, Congress passed a short term extension of the changes made to the HCTC by the ARRA.  These provisions expired on February 13, 2011. In October 2011, benefits were once again expanded by the Trade Adjustment Assistance Act of 2011.
  • On January 1, 2014 the legislation that authorized the HCTC expired. This expiration date was set by Congress when the Trade Adjustment Assistance Extension Act of 2011 was passed.

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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.

For more information, please contact us.
 

 

 

 

Page Last Reviewed or Updated: 08-Dec-2014