It is a refundable tax credit and the refund is fully paid regardless of the income tax which is owed by the recipient (IRS “Individuals”). This HCTC benefits many displaced workers and those aged 55 years and older under pension benefit. It is meant to ensure that people can still access health care services despite their financial difficulties and economic status (IRS “Individuals”).
The primary Act which has made the HCTC possible is the Trade Adjustment Act of 2002. This act basically created the HCTC and ensured that certain individuals who receive PBGC are qualified for credits (DSRA, p. 1). The act made it possible for 65% of health care insurance to be covered by the federal government. Through this act, the HCTC has been implemented since December 2002; and it has also been available for all of 2003 and the years following (DSRA, p. 1). The American Relief and Recovery Act of 2009 (ARRA) extends the coverage of the Trade Adjustment Act of 2002. It is the act which provides about $30 billion for health investments with most of the investments made available to hospitals and physicians who use Electronic Health Records (EHR) (Cisco, p. 1). Those with EHR are qualified to receive incentives from the Medicare and Medicaid starting on 2011; the act includes a $2 billion grant from the Department of Health and Human Services and also grants for telemedicine projects (Cisco, p. 1). As part of the ARRA, the Trade Adjustment Assistance Health Coverage Improvement Act of 2009 was passed and this expanded the eligibility of qualified family members beyond the enrollees’ death or divorce for up to 24 months; also, those who are eligible but live in US territories can participate in the monthly HCTC (IRS “Individuals”).
The HCTC is included as a health policy because the Congress recognized that for people who lose their health coverage, the experience can