If you participate in an Individual Coverage HRA (ICHRA), you generally cannot receive both HRA reimbursements and Premium Tax Credits (PTCs) for the same period of coverage.
Can I receive both Premium Tax Credits and ICHRA reimbursements?
Generally, no.
If your ICHRA is considered affordable and you accept the benefit, you're generally not eligible to receive Premium Tax Credits for the same months.
Receiving both benefits may result in tax reconciliation or repayment obligations.
What should I do if I receive Premium Tax Credits?
If you're enrolled in an affordable ICHRA and currently receiving Premium Tax Credits:
Contact the Health Insurance Marketplace.
Update your Marketplace application.
Remove your Premium Tax Credit eligibility if required.
The Marketplace determines your eligibility for Premium Tax Credits.
Does this apply to QSEHRAs?
No. Premium Tax Credit coordination rules differ for QSEHRAs.
If you're participating in a QSEHRA and have questions about Premium Tax Credits, consult the Marketplace or a qualified tax professional.
When does this article not apply?
This article applies only to ICHRA participants.
It does not explain how to renew your health insurance or upload proof of coverage.
Key takeaway
Employees participating in an affordable ICHRA generally cannot receive Premium Tax Credits and HRA reimbursements for the same coverage period.