The Treasury Department and Internal Revenue Service (IRS) have issued new regulations to clarify the definition of a "coverage month" for calculating the Premium Tax Credit (PTC). Starting in 2025, these rules ensure a month is considered a coverage month even if the full premium isn't paid, provided certain conditions are met. This applies in cases such as grace periods, state emergency orders, or meeting a premium payment threshold. The regulations aim to enhance reporting consistency across exchanges, impacting taxpayers who receive health insurance via the Health Insurance Exchange.
Simple Explanation
The Treasury Department and the IRS have made a new rule that helps people keep their health insurance, even if they can't pay the full amount every month. This means if someone is a little late or pays part of it, they might still be covered, starting in 2025.