I know everything is changing next year. But would our current Pre-65 Medical Insurance for Legacy US Airways qualify for the PGBC Health Coverage Tax Credit?
PBGC
Do you need help paying for health insurance? The Health Coverage Tax Credit may be for you. (Pays 72%)
You can significantly reduce your health insurance premiums for you and your family with the HCTC. It’s important you act quickly to find out if you can receive this federal tax credit.
How do I become eligible?
The HCTC is available to people receiving pension payments from the Pension Benefit Guaranty Corporation (PBGC) and their families. To qualify, you must:
1. Begin receiving pension payments from the PBGC and be 55 years old or older.
2. Keep or obtain a qualified health plan. The most common types include:
•COBRA – You must pay more than 50% of your monthly premium.
•State-qualified health plans – Health plans certified by a state’s Department of Insurance as meeting certain requirements.
•Coverage through your spouse’s employer
Under the HCTC, the individual can either claim a tax credit at the end of the year equal to 72.5% of the premium paid for their coverage or apply for a 72.5% monthly subsidy of their premium payable directly by the IRS to the COBRA administrator or insurance issuer. Under the prior legislation, affected individuals commonly applied for the subsidy and paid their 27.5% of premium to the IRS. The IRS then disbursed 100% of the premium to the COBRA administrator or insurance issuer.
http://www.ebcflex.com/Menu/Resources/ComplianceBuzz/tabid/1140/ArticleID/257/Health-Care-Tax-Credit-HCTC-Program-Restored.aspx
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Pre-65 Medical for Legacy US Airways Retirement Ins
Legacy US Airways employees represented by APFA, CWA-IBT, IAM and TWU
In 2015, you can choose between three Pre-65 Retiree medical options: The PPO 80, PPO 90 and PPO 100 options. This coverage is the same type of coverage that is offered to most active US Airways employee workgroups, except that you pay the full cost of this coverage. You are eligible to continue the coverage until the end of the month preceding the month in which you reach age 65. Medicare eligibility begins on the first day of the month in which you turn 65. You and your eligible spouse can remain in the PPO Medical Plan until you turn 65. You and your eligible dependents can elect the PPO Medical Plan even if you were not previously covered in a US Airways medical plan as an active employee. You may enroll in the PPO Medical Plan by completing the Retirement Notification Form located on Wings. (Remember, your Manager must sign this form before sending it in.) Please note that if you elect to waive this plan at retirement you will not be able to enroll at a later date, including any future annual enrollment periods).
http://my.aa.com/en/2015-retiree-benefits