What is the difference between a federal Health Coverage Tax Credit and premium tax credit from a marketplace plan?

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The Health Coverage Tax Credit (HCTC) and the Premium Tax Credit (PTC) are both programs that help people pay for health insurance. They serve different groups of people.

The Health Coverage Tax Credit was created specifically for certain trade-affected workers who lost their jobs due to foreign competition and certain retirees receiving pensions from the Pension Benefit Guaranty Corporation. It covered 72.5% of qualified health insurance premiums. It expired on December 31, 2021.

The Premium Tax Credit is available to eligible individuals and families who purchase health insurance through the Marketplace. The amount of the credit varies based on income and family size. Unlike the HCTC, this credit is still available.