HCTC Payments for Health Insurance

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Medigal
Medigal Member Posts: 1,412
edited June 2014 in Employment, Insurance, and Other Financial Issues

Does anyone on here know about the HCTC coverage for health insurance premiums which even includes COBRA.  It is called the Health Coverage Tax Credit or HCTC but I am confused by the Eligibility rules.  It says something about for people "Who receive benefits from Pension Benefit Guaranty Corp or through Trade Adjustment Programs.  Does that mean the rest of the people who get COBRA through past employers or buy other health insurance don't qualify for the credit or premium payments.?  It seems too good to be true because it can cover up to 80% of premiums being paid. 

If anyone has qualified for this program, would you let me know if it is only for people in the two above programs. That would seem so unfair to the rest of us who are paying thousands of dollars for even COBRA if others are getting it practically free!  Any info you can share will be appreciated.  This has nothing to do with that earlier Obama Cobra help.  This is for practically all types of health insurance except Medicare, Medicaid etc.  It's the "Eligibility" part that confuses me.  Thanks!

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  • Wabbit
    Wabbit Member Posts: 1,592
    edited December 2011

    I didn't know about HCTC before but the Pension Benefit Guaranty Corp insures private pension plans.  So when an employer goes bankrupt or out of business it takes over their pension obligations to their retirees.  I do know people who have been affected by this and they do not receive their entire earned pensions but only a portion of it.  So ... it makes sense that the HCTC exists as part of this pension insurance program to provide the health insurance benefits they would have received from their previous pension program.

    I read the IRS information on it and it seems very clear that it is only for those specific programs.

    I don't see it as unfair ... it is the same as anybody who has retired from a company and is receiving retiree health benefits from that company.    

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  • Medigal
    Medigal Member Posts: 1,412
    edited December 2011

    WhiteRabbit:  Thanks for the additional info.  I have already written to Obama and several senators and reps about this.  I can understand how you feel it is fair but who helps people like my DD who has a chronic disease and has to purchase expensive COBRA which she can't afford because she was fired recently?  There are many reasons people need help with health insurance and it just doesn't seem right that two agencies get helped and the rest of the people have to stew.  Just my opinion.  Thanks for the info.

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  • Wabbit
    Wabbit Member Posts: 1,592
    edited December 2011

    I certainly agree that our health insurance system is an unfair and hideous mess! 

    We have a patchwork of targeted programs all over the place that help some but not others.  The Breast and Cervical Cancer Treatment Program (which I'm thankful for of course) ... but nothing for any other kind of cancer.  Some states have good programs ... other states do not.  etc. etc. 

    This particular program is just a part of our employer based health insurance system.  And our employer based health insurance system is broken beyond repair IMO. 

    People like your daughter who paid health insurance premiums for years still lose the protection they thought they were buying when they actually need it.  Because if you lose your employment, or are too sick to work, the insurance disappears along with the job.  COBRA was a good idea but paying for that when you have lost your job and your income is quite often impossible.  You pay when you are well ... they dump you when you get sick and need it.  What a deal, huh Undecided

    My daughter's small business just found out that they will have a 60% premium increase next year.  And this is a small group of young, healthy employees who have not even used the insurance in most cases.  Definitely no big claims.  Nothing to account for that kind of increase.  So they are back to the drawing board with her company owner searching for reasonable insurance again.   

    We are paying more and more and getting less and less in return.  Medicare is the only thing that can be counted on as far as I can tell.  And there are those who would like to do away with that. 

    I share your anger.  All I know to do is to vote against those who favor the status quo in the health insurance market or pretend we don't have a problem.  And the awful truth is that they are more afraid of the insurance companies than they are of my puny little vote. 

    Wishing the best to your daughter!   And it's good to bump into you here again too Smile 

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  • Medigal
    Medigal Member Posts: 1,412
    edited December 2011

    Thanks White for the additional input.  I can't tell you how many emails I have sent to Obama and my senators etc. about the healthcare problem.  My DD would be in deep doodoo if we weren't here to help her.   I send my letters constantly on behalf of ALL people who need "affordable" healthcare. Maybe I am a bit obsessive about the problem but my beloved DD would be blind today if she did not have medical insurance.  Her laser doc is great but he doesn't work "free".  Nice running into you again.  It's been a long time.  Stay strong and stay as well as you can!

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