Feb 24, 2010

Health Coverage Tax Credit (HCTC)

Health Coverage Tax Credit (HCTC)

Upcoming onsite awareness sessions

PBGC payees may be able to receive the Health Coverage Tax Credit (HCTC) to help cover 80% of the cost of their family's monthly health care premiums.

An individual may receive the tax credit each month or at the end of the year for as long as they continue to meet eligibility requirements.

To receive the HCTC, you'll need to 1) receive pension payments from the PBGC, 2) be 55 or older, and 3) be enrolled in a qualified health plan.

The HCTC has undergone some exciting changes as a result of the American Recovery & Reinvestment Act (ARRA) of 2009. In May of 2009, the tax credit increased from 65% to 80%. Additionally, you can now be reimbursed for any full payments you made directly to your health plan while registering for the HCTC. Starting in January 2010, qualified family members can continue to receive the HCTC for up to 24 months after your enrollment in Medicare, divorce, or death. For more information on these and other changes, visit the IRS HCTC Web site.

To find out more about HCTC, you can:

The Heath Coverage Tax Credit Program is conducting a number of onsite awareness sessions to provide HCTC information and answer questions. Click here for the HCTC onsite event schedule.