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HCTC Insurance For Self Employed Overview

Jun 10th, 2011

health insurance exchangeThe Health Coverage tax credit or (HCTC) is a method created through the federal government to help reduce some of the initial cost of the self-employed health insurance for individuals and entrepreneurs that was initiated through the affordable care act. The federal government, providing the necessary requirements be met, will offer to pay up to sixty-five percent of the annual insurance costs on an annual policy. This may sound interesting, but for some there are far too many loops that the individual must overcome before the tax credit is extended. There are a few that will make the monthly payments. These individuals are choosing not be subjected to the list of mandatory rules, laws, and regulations.

The basic idea is to offer a form of affordable health insurance that will grow to become popular. Part of the difficulty with this particular insurance offering by the federal government is that there is no actual money exchange. The individuals who are enrolled in the insurance system are offered a tax credit that will show up as a deduction on the federal form 1040 at the finality of the current year. Individuals, especially the entrepreneurs scattered about the country are all not privileged to have a substantial amount of write-offs to file that will afford them the insurance tax credit.

Actually, the HCTC insurance program is more for the employed who have been displaced through a sudden layoff. These are the individuals who have little or no access to COBRA and only have the remaining thirty days to locate another affordable health insurance policy. This can certainly become a nightmare very quickly, especially for those individuals who have family members that were listed on the employer’s insurance plan coverage.

Employees who are certified by the Department of Labor will find they are eligible through the Trade Readjustment Allowance to receive additional self-employed health insurance coverage even when the initial cost will be higher than what the employee is accustomed to contributing. When the eligible employee accepts this particular route, the cost of the monthly insurance payments will be reduced on average by thirty-five percent.

The majority of employees who consider this option through the federal government are also very aware that this is basically a temporary affordable health insurance, similar to an employer COBRA insurance plan. Coverage will be directed towards the catastrophic events such as major surgery, hospitalization, anesthesia, and other related medical expenses. What the HCTC does not cover is the daily routine medical visits with a family medical physician for allergies, diabetes, and other routine activities.


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