Courtesy of the EBIA Weekly:
The President has signed the Trade
Adjustment Assistance Extension Act of 2011, which generally reauthorizes the
Trade Adjustment Assistance (TAA) program through December 31, 2013. Among
other things, the legislation increases the health coverage tax credit (HCTC)
to 72.5% of the health insurance premiums of certain eligible individuals and
their qualifying family members for eligible coverage months beginning after
February 12, 2011. The HCTC is generally available to eligible individuals
under the TAA and Alternative Trade Adjustment Assistance (ATAA) programs
(which assist individuals who have become unemployed as a result of increased
imports from, or shifts in production to, foreign countries), and to retirees
receiving PBGC pension benefits, who have lost their employer-sponsored health
coverage.
EBIA Comment: The HCTC applies in limited circumstances and should not be
confused with the 65% COBRA premium subsidy under the American Recovery and
Reinvestment Act (ARRA), which is generally not available after August 2011
(see our article) and was
not extended by this legislation. The HCTC premium credit has been increased to
72.5% from the 65% credit that has been in effect since the expiration (in
February 2011) of the 80% credit put in place under ARRA (see our article). For more information,
see EBIA’s COBRA manual at
Section XXXIV (“Special Issues: The Health Coverage Tax Credit (HCTC) and the
Special Second COBRA Election Period”); see also EBIA’s Cafeteria Plans manual at
Section XVII.F (“Cafeteria Plans and the Health Coverage Tax Credit (HCTC)”).
Available at http://www.gpo.gov/fdsys/pkg/BILLS-112hr2832enr/pdf/BILLS-112hr2832enr.pdf