Complexity and Cost of Health Insurance Tax Credits

In 2002, the U.S. Congress enacted a new health insurance tax credit to subsidize the purchase of coverage for certain individuals (trade dislocated workers and early retirees) who might otherwise become uninsured: the Health Coverage Tax Credit (HCTC).  According to the author, the HCTC has proven to be a highly complex and expensive program for the federal government to administer, for health insurers and health plans to participate in, and for consumers to understand and use.