Can a premium tax credit be applied if a consumer chooses to be covered by an individual coverage health reimbursement arrangement (ICHRA)?

The correct answer is that a premium tax credit cannot be applied if a consumer chooses to be covered by an individual coverage health reimbursement arrangement (ICHRA). This principle stems from the regulatory framework surrounding health reimbursement arrangements and premium tax credits under the Affordable Care Act (ACA).

Under ACA guidelines, individuals who have access to a qualified employer-sponsored health plan, such as an ICHRA, typically cannot receive premium tax credits for obtaining coverage through the health insurance marketplace. The rationale is based on the premise that access to employer-sponsored coverage signals that individuals have an option for affordable health insurance.

Additionally, even if the ICHRA meets certain affordability guidelines, the existence of the arrangement generally disqualifies the employee from receiving premium tax credits. This rule ensures a balance between employer-sponsored coverage and tax subsidies that are designed to assist those without affordable options.

The other options present scenarios that may seem plausible but do not align with the established guidelines regarding tax credits and ICHRAs. For instance, simply having the ICHRA with the same employer does not change the eligibility status for the tax credit, nor does filing taxes jointly affect that eligibility if the employer-sponsored option is available.