Tax Relief: Operation HCTC Puts YOU in the Doctor’s Office
Posted by LWM Team on Tue, Feb 09, 2010
Lose your job? Join millions of other Americans who didn't just lose their jobs, but also lost their ability to help their families OR themselves because of the economic crisis of 2009. Panic is the word that hits first, like a club in the back of the head! But more important than the money, is the fear that someone in your family may get sick and you will not be able to help them. Here comes the tax relief: The Health Continuation Subsidy or COBRA has been expanded this year to a program called the Health Coverage Tax Credit (‘HCTC'). The HCTC will cover a greater number of eligible people and include even more people having nervous break downs because they no longer have employer based health coverage.
What's the Deal?
COBRA will pay 65% or more (due to recent increases) of the health care premiums for people who lost their jobs involuntarily. You must pick up the difference and the program is only good for up to nine months. But if you don't qualify for this program due to details (and the devil is in the details), then the Feds offer another potential help.
Health Coverage Tax Credit is added to Seal the Deal
Just this year the HCTC was signed into law giving trade affected workers, retirees and their families 80% payment of their health care premiums. And by "trade affected" we mean your job went ‘bye, bye' overseas...or that the job you do has seriously declined or doesn't exist anymore.
How do you pay even 20% without a job? THAT is the $64 question! But if you can come up with the required premium, at least it buys some COBRA time...and keeps the wolves at bay.