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Laid-off workers get IRS help on health insurance Some on pensions or with jobs sent overseas qualify Sunday, January 24, 2010 3:45 AM By Suzanne Hoholik THE COLUMBUS DISPATCH DispatchPolitics DispatchPolitics.com Complete coverage of Ohio politics The Daily Briefing The Dispatch’s public affairs team sates the appetites of political junkies with bite-sized portions of the news and what's behind it. Buckeye Forum Veteran political reporters examine Ohio politics in this weekly podcast. Today's political news So who's going to take the train? Activist explains phone scheme Filibuster flurry killing bills Obama, new Massachusetts senator related Obama visit to GOP finds no one in retreat Clinton pressures China to back Iran sanctions Blair: Iraq war justified Industrial research may aid all Ohio So who's going to take the train? Pataskala council to solicit tax ideas Dems attack Kasich tax talk Vocational schools preparing for cuts Troopers warned courier in smuggling Kilroy's fundraising outdoes Stivers' Battle for House gears up Kasich, Strickland tally up donations Kasich, Strickland tally up donations Troopers warned courier in smuggling Industrial research may aid all Ohio Thousands of Ohioans whose jobs moved overseas might be eligible to have the federal government pay 80 percent of their health insurance. A little-known Internal Revenue Service program will pick up the bulk of health premiums through the end of the year for 37,600 people statewide, including 3,700 in central Ohio. So far, 2,540 Ohioans are enrolled in the Health Coverage Tax Credit program. The IRS is trying to get the word out about the program, especially in hard-hit Michigan and Ohio, where unemployment hit 10.9 percent in December, up from 10.6 percent the month before. "We found out in a survey that a lot of people expected to hear (about this program) from their employers but did not," said Crystal Philcox, program manager with the IRS. Those eligible also might have received information about the tax credit from the unemployment office, she said. And it's a better deal than the federal subsidy that covers 65 percent of health premiums. Those eligible for this tax credit: • Lost their jobs to foreign companies or had it outsourced to a foreign country. The U.S. Department of Labor certifies these jobs as "trade affected" and they include auto workers, janitors at auto plants and people who worked at call centers. • Are 55 to 65 years old and get their pension from the Pension Benefit Guaranty Corporation after their own companies' pensions failed. The program was created in 2002 to help people who lost jobs because of trade agreements. It was expanded last year with Recovery Act funds to pay 80 percent of premiums. It also added service-industry jobs, such as call-center positions. The IRS will pay 80 percent of the premiums to a qualified health plan each month, or participants can pay for it themselves, claim it on their federal income taxes and get reimbursed. "Most folks go with the monthly options," Philcox said. "It's huge help to monthly budgets especially when the income is so low." For those Ohio residents enrolled in the program, the average monthly health premium is $925 per month. That means individuals pay $185 per month. Last year, the government paid out more than $100 million in health premiums through the tax credit. The Ohio Department of Insurance didn't know so many eligible people have not enrolled and is planning a campaign next week to get the word out. This will include putting IRS links on the department's Web page so people can sign up. "It's tax time and it's 80 percent," said Carly Glick, department spokeswoman. "This is a big deal right now." For more information or to apply, go to the IRS link at Dispatch.com/health or call the IRS customer service line at 1-866-628-HCTC (4282). shoholik@dispatch.com