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ETA News Release: [09/23/2003]
Contact Name: Lorette Post
Phone Number: (202) 693-3984

U.S. Labor Department Grant to Virginia Will Help Trade-Impacted Workers Pay for Health Insurance

Secretary of Labor Elaine L. Chao Announces Nearly $3.2 Million to Help Workers Pay Health Insurance Premiums

WASHINGTON—U.S. Secretary of Labor Elaine L. Chao today announced a National Emergency Grant of nearly $3.2 million to Virginia to provide temporary health coverage for an estimated 3,250 individuals, including 970 former Pillowtex workers, following layoffs for trade-related reasons.

“This Administration is committed to getting help as quickly as possible to the workers who have lost their jobs in Virginia,” said Secretary of Labor Elaine L. Chao. “On top of the $3.2 million that was already given in national emergency grants to Virginia last month, this additional $3.2 million grant will help ensure that workers will not have the additional worry of being unable to have health care coverage for themselves and their families.”

President Bush signed the Health Coverage Tax Credit (HCTC) program into law last year as part of the Trade Adjustment Reform Act of 2002. This “bridge” grant will allow Virginia to immediately fund the costs of the HCTC program, ensuring that eligible workers and their families have the help they need to pay their health insurance premiums.

As of Aug. 1, the HCTC, which covers up to 65 percent of health insurance premiums for eligible workers, became available through the Internal Revenue Service (IRS). Today’s grant will allow partial payment of insurance premiums for up to two months while Virginia workers are being enrolled in the IRS-administered program.

The HCTC can be paid in advance through the IRS to a qualified health insurance plan or can be claimed as a credit on a federal tax return even if no federal income tax is owed.

Two groups of workers can receive health insurance premium assistance—those certified to receive certain Trade Adjustment Assistance (TAA) income support and those over 55 who receive Pension Benefit Guaranty Corporation (PBGC) benefits. In general, the health coverage tax credit continues as long as the displaced worker is receiving benefits under TAA or PBGC.

The national emergency grant awarded today will be administered by the Virginia Employment Commission. Workers can check their eligibility for funds by visiting their local Career One Stop Center, logging onto www.careeronestop.org or by calling 1-877-US-2-JOBS.

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