ICHRA and premium tax credits

A premium tax credit (PTC) is not allowed for an individual’s Marketplace coverage if he/she is offered an ICHRA that is affordable. This applies to employees as well as spouses and dependents of employees to whom the offer extends. • If the ICHRA is not affordable based on standards set forth in the final rule, a PTC is allowed if the employee offered the coverage “opts out” of the HRA and the other PTC requirements are met. • A PTC is not allowed for an individual’s Marketplace coverage if the individual chooses to be covered by an ICHRA, regardless of whether the HRA is affordable.