HCTS is a program that provides financial assistance to those purchasing health care coverage who have lost their jobs as a result of foreign trade issues, or whose pension plans have failed or are under-funded. HCTC programs pay 65% of the insurance policy premium, and the individual is responsible for the remaining 35 % of the premium. Blue Cross Blue Shield of Georgia is the only health insurer in Georgia to HCTC plans to those who qualify.
Eligibility requirements :
HCTC falls under the Trade Adjustment Assistance (TAA) Act of 2002. The TAA provides a 65 percent federal tax credit on health insurance premiums paid by eligible individuals while they are temporarily unemployed due to foreign competition. This allows many families to get the important health insurance they need until they get back on their feet. This legislation also provides assistance to certain retired workers if their pension plan falls through or does not have sufficient funding.
Two groups of individuals are potentially eligible for the HCTC program’s tax credit for purchasing health insurance.
Individuals receiving a Trade Readjustment Allowance (TRA);
Individuals who would be eligible to receive TRA, but have not yet exhausted their unemployment insurance (UI) benefits; or
Individuals receiving benefits under the Alternative Trade Adjustment Assistance (ATAA) program
Pension Benefit Guaranty Corporation (PBGC) pension recipients age 55 and over who meet one of the following are potentially eligible:
Individuals who receive pensions from the PBGC;
Individuals who receive benefits from the PBGC as a survivor or beneficiary of the PBGC participant;
Individuals who receive a portion of his/her ex-spouse’s benefits from the PBGC as an alternative payee; or
Individuals who received a lump sum payment after August 5, 2003
Individuals are not eligible for the HCTC for any month if on the first day of such month any of the following apply:
Enrolled in a health plan maintained by an employer or former employer that pays (or the employee pays with pre-tax dollars) at least 50 percent of the cost of the coverage;
Enrolled in health coverage under Medicare Part A or enrolled in Medicare Part B;
Enrolled in the State Children’s Health Insurance Program (SCHIP);
Enrolled in a plan with the Federal Employees Health Benefit Program (FEHBP);
Enrolled in health coverage through the U.S. military health system (TRICARE/CHAMPUS):
Imprisoned by a federal, state or local authority; or
Can be claimed as a dependent on someone else’s Federal tax return.
