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What types of health insurance can the Health Coverage Tax Credit purchase?

The Health Coverage Tax Credit (HCTC) can only be claimed for "qualified" health insurance expenses. Qualified coverage includes Consolidated Omnibus Budget Reconciliation Act (COBRA) or your spouse's employer-sponsored health plan if the employer pays less than half of the premium.

States can also designate other qualified coverage options, though they are not required to do so. State-designated qualified coverage options can be private health insurance plans or the state high-risk pool. State-designated qualified coverage cannot turn you down if you are sick (that is, it must be offered on a "guaranteed issue" basis) and it cannot impose pre-existing condition exclusion periods. There may or may not be a limit on how much you pay for state qualified coverage based on your health status or age.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.