Opting out of the ICHRA means formally declining the employer's ICHRA benefit so you can receive Premium Tax Credits from the Marketplace instead. You can only opt out and access PTCs if your ICHRA is considered unaffordable under IRS rules.
Opting out of the Individual Coverage Health Reimbursement Arrangement (ICHRA) is an important decision. Here’s what you need to know:
When to opt out
If your ICHRA is considered "unaffordable," you have the option to opt-out. This means you can decline the ICHRA and instead accept the premium tax credit for yourself and any family members enrolled in the Marketplace.
Important: affordable ICHRA means no PTC regardless
If you waive coverage through an ICHRA and it is considered affordable, you cannot claim the premium tax credit for yourself or any family members.
How Take Command helps during onboarding
We will help you determine whether your company’s ICHRA is affordable during your onboarding process. Make sure to log in and complete the required steps. We will guide you on whether to participate in the ICHRA or waive coverage and accept tax credits instead.
For more personalized assistance, you can also reference our Employee Affordability Calculator.
Additional resources
For detailed steps on opting out and exploring your healthcare options, visit our article on Opting Out of your HRA: A Step-by-Step Guide.