FROM THE OFFICE OF PUBLIC AFFAIRS

To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.

Today, the Treasury Department and the IRS issued guidance to make it easier for state governments to elect qualified health insurance that will be eligible for the Health Coverage Tax Credit. 

The Health Coverage Tax Credit, which President Bush signed into law as part of the Trade Act of 2002, provides valuable assistance for many Americans who are participating under the Trade Adjustment Assistance program or who are receiving benefits under a pension plan that has been assumed by the Pension Benefit Guaranty Corporation.  This assistance consists of an advanceable, refundable tax credit equal to 65% of the cost of qualified health insurance.  The principal types of qualified health insurance are private health plans elected by states.  This guidance issued today formalizes and clarifies guidance that has been provided to each of the states' governors.

Treasury and the IRS have been working with all the states to get a qualifying program in place for all eligible individuals.  So far, 27 states and the District of Columbia have elected plans for all their residents who are eligible individuals.  “We want to ensure that everyone eligible for the Health Coverage Tax Credit can have the opportunity to sign up for it. We are concerned about people in the remaining 23 states who are eligible for the credit but cannot use it,” said Roy Ramthun, senior advisor for health initiatives to the Secretary of the Treasury.  “We are working closely with numerous government officials and health plans in these states to encourage them to make this valuable Health Coverage Tax Credit available to their eligible residents.  We believe this guidance will make the election process easier.”

Related Documents:

• The text of the Revenue Procedure.
• List of states with qualifying health programs.