What changes did the Trade Act of 2002 and the 2009 American Recovery and Reinvestment Act make with regard to COBRA continuation coverage?
The Trade Act of 2002 created a tax credit for certain individuals who become eligible for trade adjustment assistance and for certain retired employees who are receiving pension payments from the Pension Benefit Guaranty Corporation (PBGC). Under the tax provisions, eligible individuals can either take a tax credit or get advance payment of 65% of premiums paid for qualified health insurance, including continuation coverage. Please visit the Latest News page on www.irs.gov/hctc or call the HCTC Customer Service Center toll-free at 1.866.628.HCTC (4282) (TDD/TTY: 1.866.626.HCTC (4282)) if you have questions. More information about the Trade Act is available at http://www.doleta.gov/tradeact/. The 2009 American Recovery and Reinvestment Act (ARRA) changed the HCTC. These changes included an increased tax credit, extended eligibility for Qualified Family Members of TAA recipients and PBGC payees who enrolled in Medicare, passed away or finalized a divorce, an extension of COBRA coverage
