July 3, 2003
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Maine Receives First Health Coverage Tax Credit Payments

The Treasury Department announced that qualified health plans in Maine received the first advance tax credit payments on behalf of eligible Maine residents. This is particularly noteworthy because these are the first federal health coverage tax credit payments in the nation.  As part of Maine's Health Coverage Tax Credit (HCTC) pilot program, participating plans received the first payment of nearly $70,000 that will help cover the cost of health insurance premiums for more than 100 families in Maine. Many additional Maine families remain eligible, and they are encouraged to register as soon as possible so that health coverage assistance can begin for them as well.

In May, Treasury Secretary John Snow announced that Maine partnered with the federal government to launch the first advance health coverage tax credit pilot program to help cover the cost of health insurance premiums for many Maine residents.

The Trade Adjustment Assistance Act President Bush signed into law last year includes the new Health Coverage Tax Credit (HCTC). This program provides an advanced payment of 65% of the premium cost for a qualified health plan for individuals who are eligible to receive Trade Adjustment Assistance (TAA) benefits or certain individuals who receive pension benefit payments from the Pension Benefit Guaranty Corporation (PBGC).  Approximately 2,800 workers and their families in Maine are estimated to qualify for the program.

The Maine pilot program allows eligible individuals to register immediately for the advance HCTC program, which will otherwise start in August 2003 for the rest of the country.

Maine residents that are eligible for the pilot program should have received a HCTC notification letter in the mail and an HCTC Program Kit. The Program Kit provides all the necessary information to determine eligibility and the form to register.

The HCTC advance payment program will be available in other states beginning in August 2003. For more information on a particular state and the health insurance programs that qualify, please visit the HCTC website at http://www.irs.gov and enter IRS Keyword: HCTC.

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