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The Small Business Health Care Tax Credit

- Estimator

Plans
Your Credit

- Insurance Plan Information

Complete the form below and click "Add" to add a plan to the list. Repeat for each eligible plan you offer.

  • Plan Offered in:
  • Name of Plan:
Annual cost per employee of:
Self:
and you pay .
Self plus one:
and you pay .
Family:
and you pay .
For this plan, number of employees that are enrolled in:
  • Self:
  • Self plus one:
  • Family:
Plan State
No Plans Added

Glossary

These are the terms and definitions of items as they apply in determining your credit.

Qualifying Arrangement

A qualifying arrangement is generally an arrangement that requires you to pay a uniform percentage or amount (not less than 50% of single coverage) of the premium cost for each enrolled employee's health insurance coverage. An arrangement that offers different tiers of coverage (for example, self-only, self-plus one, and family coverage) is generally a qualifying arrangement if it requires you to pay a uniform percentage (not less than 50%) separately for each tier of coverage you offer. However, an arrangement can be a qualifying arrangement even if it requires you to pay a uniform percentage that is less than 50% of the premium cost for some employees.

There are special rules for tax years beginning in 2010 and for multi-employer health and welfare plans. For more details, see Notice 2010-82.


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Health Insurance Coverage

For credit purposes, health insurance coverage means benefits consisting of medical care (provided directly, through insurance or reimbursement, or otherwise) under any hospital or medical service policy or certificate, hospital or medical service plan contract, or health maintenance organization contract offered by a health insurance provider.

A health insurance provider is either an insurance company or another entity licensed under state law to provide health insurance coverage.

Health insurance coverage also includes coverage under the following plans.

  • Limited scope dental or vision plans.
  • Long-term care plans.
  • Nursing home care plans.
  • Home health care plans.
  • Community-based care plans.
  • Any combination of the above.

In addition, health insurance coverage includes the following.

  • Coverage only for a specified disease or illness.
  • Hospital indemnity or other fixed indemnity insurance.
  • Medicare supplemental health insurance.
  • Certain other supplemental coverage.
  • Similar supplemental coverage provided to coverage under a group health plan.

Health insurance coverage does not include the following benefits.

  • Coverage only for accident, or disability income insurance, or any combination thereof.
  • Coverage issued as a supplement to liability insurance.
  • Liability insurance, including general liability insurance and automobile liability insurance.
  • Workers’ compensation or similar insurance.
  • Automobile medical payment insurance.
  • Credit-only insurance.
  • Coverage for on-site medical clinics.
  • Other similar insurance coverage, specified in regulations, under which benefits for medical care are secondary or incidental to other insurance benefits.

Also, because the coverage must be offered by a health insurance provider as discussed above, health insurance coverage does not include benefits provided by the following.

  • Health reimbursement arrangements (HRAs).
  • Flexible spending arrangements (health FSAs).
  • Coverage under other self-insured plans.
  • Health savings accounts (HSAs).

However, health insurance coverage may include coverage under the following plans.

  • Church welfare benefit plans.
  • Multiemployer health and welfare plans that provide coverage through a health insurance provider. For details, see Notice 2010-82.

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