Law Dictionary

Excepted Premium Amount

(Tax Law)

The portion of an individual’s premium to which the HCTC will not match the 65% tax credit. By IRS standards, the following coverage does not qualify for the HCTC:

1.Certain coverage types such as dental, vision and long-term care coverage when it is not offered as a comprehensive benefit in an individual’s health plan premium.
2. Coverage under flexible spending arrangements, such as a Health Savings Account (HAS) or an Archer Medical Savings Account (MSA).
3.Any insurance if substantially all of the coverage is:

a. Accident or disability income insurance (or a combination of the two),
b. Liability insurance,
c.A supplement to liability insurance,
d.Workers’ compensation or similar insurance,
e. Automobile medical payment insurance,
f. Credit-only insurance,
g. Coverage for on-site medical clinics,
h. Limited scope dental or vision benefits,
i. Benefits for long-term care, nursing home care, home health care, community-based care (or any combination),
j. Coverage only for a specified disease or illness,
k. Hospital indemnity or other fixed indemnity insurance, and
l. Medicare supplemental insurance, TRICARE supplemental insurance, or other similar supplemental insurance to an employer-sponsored group health.

Source : Internal Revenue Service - United States Department of Treasury

Language : English

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