The IRS has released final regulations that redefine the term "coverage month" and update rules regarding the computation of an individual taxpayer's premium tax credit.
Under the new definition, a month qualifies as a coverage month if the premium paid is sufficient to prevent coverage termination.
The regulations also clarify how unpaid premiums affect the calculation of the monthly premium tax credit and outline eligibility criteria for state basic health programs.
These changes will take effect for tax years starting Jan. 1, 2025, impacting taxpayers who enroll in individual health insurance through exchanges and may qualify for a premium tax credit. Read more.