WASHINGTON—The House of Representatives next week is expected to consider Senate-approved trade legislation that includes a boost to federal health insurance premium subsidies for employees who lose their jobs due to foreign competition and older retirees in failed pension plans.
House Speaker John Boehner, R-Ohio, said in a Monday statement that consideration of the legislation will be a “top priority” of the House.
Included in the trade bill is a provision that involves the Health Coverage Tax Credit and is part of the Trade Adjustment Assistance Reform Act of 2002.
Federal lawmakers originally set the subsidy as a 65% federal tax credit. In 2009, an economic stimulus law raised the credit to 80% through Dec. 31, 2010. Last year, Congress approved a temporary extension through Feb. 13. The subsidy reverted to 65% after lawmakers in February could not agree on another extension.
The measure, H.R. 2832, approved last month by the Senate on a 70-27 vote, would raise the tax credit to 72.5% until 2014.
Aside from those who lose their jobs due to foreign competition, the subsidy also would be available to those at least age 55 whose pension plans have been taken over by the Pension Benefit Guaranty Corp.
The tax credit can be used to offset the cost of a variety of health insurance plans, including COBRA continuation coverage and individual plans offered by commercial insurers.
Under a system implemented by the Internal Revenue Service, the beneficiary pays 35% of his or her premium to the government. The IRS then remits the full amount to the health plan or plan administrator.
WASHINGTON—A law that provided greater federal health insurance premium subsidies, such as COBRA coverage, to workers who lose their jobs due to foreign competition and older retirees in failed pension plans has expired due to congressional inaction.