Integration of Trade Services for Dislocated Workers - Texas ...

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Integration of Trade Services for Dislocated Workers - Texas ...

Integration of Trade Services for Dislocated Workers: A Comprehensive Guide

Part E: Additional Trade Programs

Part E-100 — Health Coverage Tax Credit

E-100.1:

Health

Coverage Tax

Credit

Overview

The Trade Adjustment Reform Act of 2002 (Trade Act) created a

federal insurance program to subsidize health insurance coverage

for the following two groups of Trade-certified workers and their

qualifying family members:

1. Trade Readjustment Allowance (TRA) recipients

2. Alternative Trade Adjustment Assistance (ATAA) recipients

The Health Coverage Tax Credit (HCTC) is a federal program that

helps pay 65 percent of health insurance premiums for health

coverage under qualified plans. Workers may claim it as:

• a tax credit on a federal tax return filed at the end of the year;

or

• an advance reimbursement option upon paying 35 percent of the

premium to HCTC.

Note: Provide an HCTC brochure to potentially trade-affected

dislocated workers during Rapid Response orientation events or

on their first visit to the Texas Workforce Center (Workforce

Center).

E-100.2:

Health

Coverage Tax

Credit Eligibility

The Texas Workforce Commission’s (TWC) Unemployment

Insurance (UI) and Regulation Division provides monthly lists to

the HCTC program of customers eligible under the Trade program.

The list includes Trade Adjustment Assistance (TAA) participants

who:

• receive TRA; or

• are eligible for TRA but have not exhausted UI benefits; and

• have filed a TRA application; and

Part E: Additional Trade Programs May 2006 Page E-1

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