Unpaid health insurance premiums can still count for federal tax credits

The US Treasury Department changed how it defines a "coverage month" for federal health insurance tax credits. Now, if you pay enough of your monthly premium to keep your health insurance active, that month counts for the tax credit, even if you don't pay the full amount.

This rule change means people can keep getting federal help to pay for health insurance even if they fall behind on some payments. It prevents a situation where someone loses their tax credit for a month just because they couldn't pay a small part of their premium. This makes it easier for people to maintain continuous health coverage, especially those with fluctuating incomes.