On June 13, 2019, the federal government released a final ruling that created a new HRA called the individual coverage HRA (ICHRA) and included guidelines for making coverage under the HRA “affordable.” To be considered affordable, the cost of the lowest cost silver plan must not be more than 9.78% of an employee’s household income. If an ICHRA allowance makes the benefit affordable for an employee, it can impact their eligibility for a premium tax credit (PTC), as explained below.
