It depends.

  • If you opt out of the HRA and the HRA is considered unaffordable you may claim the premium tax credit for yourself and any family members enrolled in Exchange coverage if you are otherwise eligible.

  • If you opt out of the HRA and the HRA is considered affordable, you may not claim the premium tax credit for yourself or any family members.

  • If you are a former employee, the offer of an HRA will not prevent you from claiming the premium tax credit (if you are otherwise eligible for it), regardless of whether the HRA is considered affordable and as long as you don’t accept the HRA.

How do I know if the ICHRA I’ve been offered is considered affordable?

We will help you determine whether your company’s ICHRA is affordable during your onboarding process. We will also help you determine whether you are eligible for premium tax credits. Be sure to log in and complete the required onboarding steps. We will guide you on whether to participate in the ICHRA or if you should opt out and accept tax credits instead.

What information do I need to provide to the Exchange to know whether or not I can accept my tax credit?

Please refer to the ICHRA Employee Notice in your Member Portal for more detailed information on what information to provide. If you’re applying for advance payments of the premium tax credit, you’ll need to provide information from the answer to “What are the basic terms of the ICHRA that my employer is offering?” on page 2. You will also need to tell the Exchange whether you are a current employee or former employee.

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