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Member, Beacon International Group, Ltd.
WASHINGTON—The House on Wednesday approved legislation that would give an 18-month extension to a federal law that provides rich health insurance premium subsidies to workers who lose their jobs due to foreign competition and older participants in failed pension plans.
Under H.R. 6517, introduced by Ways and Means Committee Chairman Rep. Sander Levin, D-Mich., eligible beneficiaries would continue to receive through June 30, 2012 an 80% tax credit to partially offset the cost of health insurance coverage they purchase, such as COBRA continuation coverage.
A 2002 law created the subsidy—known as the Health Coverage Tax Credit—and set the tax credit at 65%. The 2009 stimulus law raised the tax credit to 80%.
While there is broad support in Congress for the subsidy, it isn't known if the Senate will act on the proposal before the session ends, said Frank McArdle, a principal with Aon Hewitt Inc. in Washington.