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Retiree Medical, Prescription Drug and Mental Health and Substance Abuse Programs - RR Donnelley   
Your Legal Right to Continuation Coverage
Trade Act Implications
The Trade Act of 2002 (the “Trade Act”) is a law that provides trade adjustment assistance (TAA) for eligible individuals. It includes a new federal tax credit that continuation coverage beneficiaries who are eligible under the law can use to offset part of the cost of continuation coverage. This special tax credit is available for workers who lose their jobs and are found eligible for TAA benefits, or are between ages 55 and 64 and receiving monthly benefits from the Pension Benefit Guaranty Corporation (PBGC).
In addition to the continuation coverage tax credit, the Trade Act adds a special 60-day continuation coverage election period for individuals who are deemed eligible for TAA benefits and the tax credit. The new election period applies to those who had not previously elected continuation coverage and are deemed eligible for the tax credit provisions, but only if the eligibility determination occurs within six months of the loss of group health coverage. Additionally, if continuation coverage is elected during this special time period, such coverage is not retroactive to the date of the qualifying event, but begins on the first day of the special new 60-day period.
The law also clarifies that the period between the loss of coverage and the beginning of the special 60-day election period does not count against the 63-day break-in-coverage rule under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
For more information about the tax credit, you can call the Health Coverage Tax Credit Customer Contact Center toll-free at 1-866-628-4282. TDD/TTY callers may call toll-free at 1-866-626-4282. More information may also be found at www.doleta.gov/tradeact/2002act_index.cfm.
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