Form 13599 

July 2004 OMB Clearance No. 1545-1888 

Rating in State-Qualified Private Plans 

The Trade Act of 2002, Public Law No. 107-21 0 created the Health Coverage Tax Credit (HCTC) for the purchase of health 

coverage by certain individuals. Eligibility for the HCTC is determined on a monthly basis. For each month an individual claims the 

credit, whether in advance or on their federal tax return, he or she must meet certain requirements including enrollment in a qualified 

health plan. Only specific health plans qualify for the HCTC. A qualified health plan is one that is allowable under the HCTC 

legislation including three automatically qualified plan types or a state-qualified health plan. A state-qualified health plan is one that a 

State elects as qualified specifically for the HCTC program and must meet the legislative requirements for health insurance set forth 

in the Trade Act of 2002 and codified in Internal Revenue Code Section 35(e)(2). 

This form should be completed by a representative of the state for the health care option you recently submitted to the HCTC 

program for review. Please complete this form according to the type of product your state has submitted for HCTC. The product types 

are outlined in item 1. If you have any questions while filling out this form, please contact Steve Finan at the Department of the US 

Treasury at (202) 622-1446. Thank you in advance for your participation. Once completed, please send the form back to us by fax 

or mail. 

Fax Number: 

1-800-675-9602 

Mailing Address: 

ATTN: HCTC State-Qualified 

Accenture 15115 Park Row 

Houston, TX 77084 

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. Your response is voluntary. You 

are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. 

Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. 

Generally, tax returns and return information are confidential, as required by code section 6103. The estimated average time to complete this form is 30 minutes. If you 

have comments concerning the accuracy of this time estimate or suggestions for making this form simpler, we will be happy to hear from you. You can write to the Tax 

Products Coordinating Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. Do NOT send this form to this address. Instead, enclose it with 

the magnetic tape and send it to the Service Center to which you submit your tapes or send it to the transmission reception site that received your transmitted returns. 

State: 

Contact Name: 

Title: 

Organization: 

Date: 

Phone: 

Email: 

1. Is this product offered to HCTC eligibles through: (CHECK ONE) 

a. An Individual Plan (Please answer questions in Section 2) 

b. A Group Plan (Please answer questions in Section 3) 

c. Another Pooling Arrangement (Please answer question in Section 4) 

2. If it is an INDIVIDUAL plan: complete questions 2A through 2E. 

2A. Are premium rates based on individual health/risk status? (Check One) YES NO 

2B. How is the underwriting structure determined? (Check One) Set by the State (e.g. Standardized) 

Based on a method established by the insurer Other (Please Specify) 

2C. Individuals are rated by: (Check all that apply) Age Sex Geography Health Status 

Other (Please Specify) 

Form 13599 (7-2004) Cat. No. 38301E Page 1 
OMB Clearance No. 1545-1888 

2D. Is the product(s) being offered to HCTC also available to non-HCTC individuals in the market? 

(Check One) YES NO 

If YES, please answer the following questions. 

a. Are the HCTC-eligible individuals rated on the same basis as other individuals–e.g., are they in the same 

“pool” for rating purposes? (Check One) YES NO 

b. If the HCTC plans are rated separately from the rest of the individual market (e.g., they are rated with 

some sub-groups of the individual market), please describe what the pool is/what other groups are in the 

HCTC pool (e.g., HIPAA eligibles)? 

c. Are there other separate pools for certain groups in the individual market? (Check One) YES NO 

If so, what are they (please give examples)? 

2E. What is your rate structure? (Check One) Single Single + Spouse Single + Family 

Other (Please Specify) 

3 If it is a GROUP Plan complete questions 3A through 3F. 

3A. Is it subject to small or large group regulations in the state? (Check One) YES NO 

3B. Can people remain covered under the group health plan after they are no longer eligible for the HCTC? 

(Check One) YES NO 

3C. If people lose eligibility for the group plan (once they are no longer HCTC eligible), are they eligible for: 

a. Cobra? (Check One) YES NO 

b. Another form of state continuation coverage? (Check One) YES NO 

If so, for how long? 

c. A conversion policy? (Check One) YES NO 

3D. Who is the ‘administrator’ for the group plan? (i.e., what institution-insurance company, bank, state agency, 

etc?) Administrator Name: 

Form 13599 (7-2004) Cat. No. 38301E Page 2 
OMB Clearance No. 1545-1888 

3E. a. How are group member premiums determined? (Check One) 

As a group (i.e. all enrollees pay the same, average rate) 

As individuals 

If group member premiums are determined on an Individual basis, how are they rated? (Check all that 

apply) Age Sex Geography Health Status 

Other (Please Specify) 

b. Is there a maximum rate or premium adjustment that can be charged to individual enrollees within the 

group? (Check One) YES NO N/A 

If YES, is this maximum based on state rating restrictions? (Check One) YES NO 

c. What is the maximum premium adjustment that can be applied for: 

Age 

Gender 

Health status/claims experience/risk status 

Other factors (Please Describe) 

d. Are these factors otherwise used to rate individuals in group plans in the state? 

(Check One) YES NO N/A 

3F. e. What is your rate structure? (Check One) Single Single + Spouse Single + Family 

Other (Please Specify) 

4. If it is a ANOTHER POOLING ARRANGEMENT complete questions 4A through 4H: 

4A. Is the arrangement subject to individual market rules, group market rules, or some other set of state rules? 

(Check One) YES NO 

If YES, please specify 

4B. Are premium rates based on individual health/risk status? (Check One) YES NO 

Form 13599 (7-2004) Cat. No. 38301E Page 3 
OMB Clearance No. 1545-1888 

4C. How is the underwriting structure determined? (Check One) Set by the State (e.g. Standardized) 

Based on a method established by the insurer Other (Please Specify) 

4D. If group member premiums are determined on an Individual bases, how are they rated? (Check all that apply) 

Age Sex Geography Health Status 

Other (Please Specify) 

4E. Is there some other factor or basis for determining premium rates in this pooling arrangement? (Check One) 

YES NO 

If YES, please specify 

4F. Is there a maximum on rates that can be charged within the plan? (Check One) YES NO 

If YES, how is the maximum determined? 

4G. Is the product(s) being offered to HCTC also available to non-HCTC individuals in the market? 

(Check One) YES NO 

d. If YES, are the HCTC-eligible individuals rated on the same basis as other individuals—e.g., are they in the 

same “pool” for rating purposes? (Check One) YES NO 

e. If the HCTC plans are rated separately from the rest of the individual market (e.g., they are rated with 

some sub-groups of the individual market), please describe what the pool is/what other groups are in the 

HCTC pool (e.g., HIPAA eligibles)? 

f. Are there other separate pools for certain groups in the individual market? (Check One) YES NO 

If YES, what are they? (please give examples) 

4H. What is your rate structure? (Check One) Single Single + Spouse Single + Family 

Other (Please describe) 

Form 13599 (7-2004) Cat. No. 38301E Page 4