In 2002, the U.S. Congress enacted the Health Coverage Tax Credit to subsidize the purchase of coverage for certain individuals, particularly early retirees and workers displaced by international trade, who might otherwise be uninsured. As part of the federal Trade Adjustment Assistance Reform Act of 2002, the tax credit pays 65 percent of health insurance premiums for eligible individuals and their dependents.
In this 2004 to 2005 project, Karen Pollitz, MPP, of Georgetown University's Health Policy Institute examined early experiences with the Health Coverage Tax Credit to inform policy-makers' discussions of other health coverage tax credits.
This project was part of the Robert Wood Johnson Foundation (RWJF) national program Changes in Health Care Financing and Organization (HCFO) . HCFO supports policy analysis, research, evaluation and demonstration projects that provide public and private decision leaders with usable and timely information on health care policy and financing issues.
The researchers reported the following findings: