What Does It Mean to Opt Out of the ICHRA?
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 Note:
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.
Guidance 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.
Summary:
Opting out of ICHRA might allow you to benefit from premium tax credits if the ICHRA is unaffordable. Be sure to assess affordability during your onboarding process for the best decision.