A premium tax credit is not allowed for a consumer's Marketplace coverage if the individual chooses to be covered by an ICHRA. The statement is:

• A. False
• B. True
• C. Not applicable
• D. Sometimes

Answer: (B)

Premium tax credits are available only to people who don’t have access to affordable, minimum-value employer coverage. An ICHRA (Individual Coverage Health Reimbursement Arrangement) is a form of employer-provided coverage that can be used to buy Marketplace plans. If the ICHRA offer is affordable and provides minimum value, it counts as eligible employer coverage, which makes you ineligible for the Premium Tax Credit for Marketplace coverage. So choosing to be covered by an ICHRA generally blocks the PTC. There are edge cases: if the ICHRA isn’t affordable or doesn’t meet minimum value, you may still qualify for the PTC.