Latest News
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New and Improved HCTC Program Web Pages
You may have noticed that we recently reorganized the HCTC-related web pages on this site. Hopefully you will find the information you are looking for quickly and easily. Please send us your feedback on how we can continue to improve.
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Important Information Regarding Continuation of the HCTC
You may have heard in the news that the Trade Act, which created the HCTC, has not yet been reauthorized. However, the HCTC Program continues to operate as usual. If you are a current monthly HCTC participant, you should continue to receive the HCTC as you do today, through direct payment to your health plan. You should continue sending monthly payments as directed on your invoice. If you want to register for the monthly HCTC Program, please mail in the Registration Form you received with your Program Kit, and the HCTC Program will process your registration.
Health Coverage Tax Credit (HCTC) Overview
The HCTC helps certain trade-affected workers, retirees, and their families pay their health insurance premiums. The HCTC makes health coverage more affordable by paying 65% of health insurance premiums for individuals who are eligible for the tax credit.
The HCTC is a refundable tax credit - it is paid in full no matter how much federal income tax an eligible individual owes. The HCTC is available on a monthly basis to help individuals pay their health insurance costs as they become due or on a yearly basis when they file their federal tax return. The HCTC Program partners with various federal and state agencies and Health Plan Administrators (HPAs) to deliver the tax credit to eligible individuals.
History and Purpose of the HCTC
The HCTC was created as part of the Trade Act of 2002. Congress created the HCTC Program to help:
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workers who lost their jobs due to trade and qualified for Trade Adjustment Assistance (TAA) or Alternative Trade Adjustment Assistance (ATAA)
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retirees, over age 55, whose pensions were taken over by the Pension Benefit Guaranty Corporation (PBGC)
The HCTC legislation also provided that family members of these trade-affected workers and retirees can receive the tax credit.
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, therefore, is to make health coverage more affordable for these groups of people who otherwise might not be insured. The HCTC is unique, because it is the first time a federal tax credit is being used to help people who are affected by trade or employers experiencing financial hardship afford health insurance coverage.
The HCTC was first made available on a monthly basis in August 2003, and on a yearly basis for Tax Year 2002. The HCTC Program continually makes operational improvements to better administer this pioneering tax credit.
Return to the HCTC Program home page.
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