Heath Coverage Tax Credit
September 27, 2005
All United Flight Attendant retirees age 55 and older automatically received a Health Coverage Tax Credit (HCTC) package because the PBGC has assumed trusteeship of the United Airlines Flight Attendant Defined Benefit Pension Plan. Please take note:
- If you are a retiree and covered by the United Airlines retiree medical plan, then "NO,” you do not need to complete the forms.
- However, HCTC advises that you keep the package in the event your circumstances change.
- Qualified Health Plans eligible today for HCTC are listed below.
If you are not covered by the United retiree medical plan, please read the information carefully to determine your eligibility for this tax credit. If you have any questions regarding your eligibility, call the HCTC at 1-866-628-4282.
Qualified Health Plan – Eligible individuals must be enrolled in qualified health coverage in order to claim the HCTC.
Only the following types of health plans are qualified for purposes of the HCTC:
- COBRA continuation coverage, unless the employer or former employer pays at least 50% of the cost of coverage. Any share of the premium that is paid by the eligible individual or the eligible individual’s spouse on a pre-tax basis is considered to have been paid by your employer and must be included as such when determining the percentage of employer coverage.
- Individual coverage in which the eligible individual was enrolled for at least the last 30 days before being separated from the job that makes the individual eligible for TRA benefits, ATAA benefits, or for payments from the PBGC. (Individual coverage provided under a contract issued to one individual or family at a time usually requiring evidence of insurability and usually purchased through agents, brokers, or associations.)
- An eligible individual’s spouse's insurance from work, as long as the employer contributes less than 50 percent of the total cost of coverage. Any share of the premium that is paid by the eligible individual or the eligible individual’s spouse on a pre-tax basis is considered to have been paid by the employer and must be included as such when determining the percentage of employer coverage.
- State-qualified health plans.-- List of State qualified plans may viewed at www.irs.gov, Key Word: HCTC
