An ICHRA offer can affect an employee's premium tax credit eligibility.
An employee who participates in the ICHRA cannot receive a premium tax credit for Marketplace coverage.
If the ICHRA offer is considered affordable, the employee generally cannot receive premium tax credits for Marketplace coverage for the same period even if they opt out.
A premium tax credit may be available when:
The ICHRA offer is unaffordable, and
The employee opts out of the ICHRA.
Employees must have an opportunity to opt out of and waive future ICHRA amounts before each plan year and, subject to the plan's terms, upon termination of employment.
Employees completing a Marketplace application may be asked about their employer's ICHRA offer. They need to provide accurate information.
Lirvion does not provide individual tax advice. Employees with questions about their own premium tax credit eligibility should be directed to official Marketplace resources or a qualified tax professional.