Benefits and Compensation

Premium Subsidy Extension Becomes Law

Trade legislation that also extends premium subsidies for health coverage under the Health Care Tax Credit (HCTC) program was signed into law by President Obama Oct. 21.

The HCTC was enacted as part of the Trade Act of 2002. As originally enacted, it provided a 65-percent tax credit for qualifying health coverage (including COBRA continuation coverage).

The Trade Adjustment Assistance Extension Act of 2011 (H.R. 2832) increases the HCTC from 65 percent to 72.5 percent and extends the HCTC program though Jan. 1, 2014.

For more details on the bill, go here. For a copy of the White House statement, go here.

The HCTC program is explained in detail in Mandated Health Benefits: The COBRA Guide.

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