Law Dictionary

Creditable Coverage

(Tax Law)

For the purposes of the HCTC, creditable coverage includes:

• A group health plan (including COBRA, Temporary Continuation of Coverage (TCC), or State continuation coverage)
• Health insurance coverage (including individual coverage, college or school insurance, or short-term limited duration insurance)

A qualified health plan may require an HCTC candidate to have three months of creditable coverage immediately before they enroll in the health plan. The "immediately' includes a possible break in coverage up to 62 days. If the break in coverage is more than 62 days, the plan can impose preexisting condition exclusions. Although a health plan administrator can require three months of creditable coverage, it can also waive this requirement.

Source : Internal Revenue Service - United States Department of Treasury

Language : English

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