The Health Coverage Tax Credit was enacted by Congress in the Trade Act of 2002. It is a federal tax credit that pays up to 65% of qualified health plan premiums for eligible workers whose health coverage has been impacted because they lost their employment due to foreign competition. The credit is likewise available to certain retirees whose pensions from a former employer were terminated and who're now receiving benefits from the Pension Benefit Guaranty Corporation (PBGC). The credit is intended to make health care coverage more accessible and available to the people who otherwise mightn't be in a position to afford it.