Tax Credit
Depending on how much you earn, you could get financial help with the cost of insurance. Tax credits help lower the cost of your health insurance premium payments each month. Tax credit amounts are based on your income and are set by the federal government. If you're eligible for tax credits, you can choose to use some or all of your tax credit to lower your monthly premium payment, or wait to get all of your tax credit when you file your federal income tax return. You can change the amount of tax credits you use monthly through your Washington Healthplanfinder account.
Please contact the Exchange Customer Support Center (Phone: 1-855-923-4633 TTY: 1-855-627-9604). Help is available in 175 languages and language and disability accommodations are provided at no cost. Free help from local experts is accessible via the WAPlanfinder Mobile App or by visiting Washington Healthplanfinder's Support in Your Area page.
Additional information and resources:
- Step by step instructions on how to change your tax credits
- Step by step instructions on how to report unemployment income
Information for Customers Offered a Health Reimbursement Arrangement by their Employer
A Health Reimbursement Arrangements (HRA) is an employee health benefit that reimburses you for your health care expenses (and sometimes your family members' health care expenses) up to a certain dollar amount. Your employer is required to send you information that explains the terms of the HRA.
Two types of HRAs can be used to help pay for your individual health insurance coverage but may reduce or eliminate your premium tax credit for coverage purchased through Washington Healthplanfinder.
Whether your eligibility for premium tax credits is impacted is determined by whether your HRA is considered affordable.
An Individual Coverage Health Reimbursement Arrangements (ICHRA) can be used to help purchase an individual health insurance policy. To use the HRA, you need to be enrolled in individual coverage or Medicare.
You can either accept the HRA or opt out. The best choice for you depends on your other health care options. For example, if you are eligible for Medicaid or for a tax credit to help you pay for coverage, those options may be more affordable for you than purchasing coverage using the HRA.
You may not accept the HRA and also receive financial help to pay for coverage through Washington Healthplanfinder.
FAQS
How do I know if my employer is offering an ICHRA?
If your employer offers an ICHRA, you will receive a written notice from your employer. The notice contains important information regarding your ICHRA. You will need this information to determine how the ICHRA will affect your premium tax credits.
How do I know if I am getting a premium tax credit that might be impacted by an ICHRA?
To determine if you are eligible for tax credits, select "View Current Eligibility Results" from the Quick Links menu on your Washington Healthplanfinder dashboard.
My employer is offering an individual coverage HRA. How can I learn about my options? How do I know if my ICHRA is considered affordable?
To learn how an HRA affects your tax credit eligibility and what to do next, please contact Washington Healthplanfinder at 1-855-923-4633 (TTY: 1-855-627-9604). Tell the customer service representative that you have an HRA. You will be asked to provide the following information in order to assist you:
- Your most recent ICHRA notice from your employer. If you didn't receive a notice, check with your employer.
- The adjusted gross income amount from your most recent federal income tax. You'll need this to determine your household income for the year you're offered the HRA.
How does an ICHRA impact my premium tax credit from Washington Healthplanfinder?
Federal law prohibits you from receiving an ICHRA benefit from your employer and a premium tax credit if your ICHRA is considered affordable. This is true even if you opt out of the HRA.
If the ICHRA is considered unaffordable and you opt out of the HRA, you may claim a tax credit for yourself and any family members.
What type of coverage do I need to use an ICHRA?
If you decide to accept the individual coverage HRA, you (and your family members, if applicable) must be enrolled in individual health insurance coverage (or Medicare) for each month you (or your family members) are covered by the HRA.
Individual health insurance coverage must be "ACA-compliant," meaning it satisfies the Affordable Care Act's requirements related to pre-existing conditions, covered benefits, and coverage limits. You may not use the HRA with more limited coverage like a short-term limited-duration plan, plans that only cover "excepted benefits" (for example, a dental- or vision-only plan), or a health care sharing ministry.
You can enroll in or change individual health insurance coverage annually during the Open Enrollment Period. If you are newly offered a ICHRA (for example, if you are a new employee) you may qualify for a Special Enrollment Period to enroll in or change individual coverage. Generally, you'll need to enroll in coverage within the 60 days before the date your ICHRA starts
Where can I learn more about ICHRAs?
A Qualified Small Employer HRA (QSEHRA) can be used to help purchase an individual health insurance policy or used with other qualifying coverage. QSEHRAs can only be offered by qualified small employers " those with fewer than 50 full-time employees (or an equivalent number of part-time employees).
If you qualify for a premium tax credit through Washington Healthplanfinder, and your employer offers this benefit (even if you do not use it), your premium tax credit amount will be reduced or eliminated by the federal government in accordance with federal law. To reduce the chance that you will owe money after you file federal taxes next year, you can take action in Washington Healthplanfinder.
FAQS
How do I know if my employer offers a QSEHRA?
If your employer offers a QSEHRA, you will receive a written notice from your employer. The notice contains important information regarding your QSEHRA permitted benefit (the dollar amount available to you to pay for medical expenses). You will need this information to determine how the QSEHRA will affect your premium tax credits.
How do I know if I am getting a premium tax credit that might be impacted by a QSEHRA?
To determine if you are eligible for tax credits, select "View Current Eligibility Results" from the Quick Links menu on your Washington Healthplanfinder dashboard.
My employer is offering a QSEHRA. How can I learn about my options? How do I know if my QSEHRA is considered affordable?
To learn how and what to do next, please contact Washington Healthplanfinder at 1-855-923-4633 (TTY: 1-855-627-9604). Tell the customer service representative that you have an HRA. You will be asked to provide the following information in order to assist you:
- Your most recent QSEHRA notice from your employer. If you didn't receive a notice, check with your employer.
- The adjusted gross income amount from your most recent federal income tax. You'll need this to determine your household income for the year you're offered the HRA.
How does a QSEHRA impact my premium tax credit from Washington Healthplanfinder?
Federal law prohibits you from receiving a tax-free QSEHRA benefit from your employer and a full federal premium tax credit. Your premium tax credit amount will be reduced or eliminated based on a federal formula after you file your taxes. If you are offered a QSEHRA, you can take action in Washington Healthplanfinder to reduce the chance that you will owe money after you file federal taxes next year by adjusting the amount of tax credits you take each month by selecting "Update Your Tax Credit Options" from your dashboard.
How is a QSEHRA different from a Health Savings Account or Health Reimbursement Arrangement?
A QSEHRA is different from a Health Savings Account or a typical Health Reimbursement Arrangement. A QSEHRA is a special type of HRA that does not have to be paired with a health insurance plan offered by the employer.
What type of coverage do I need to use a QSEHRA?
To use your QSEHRA, you (and your family members, if applicable) must be enrolled in coverage purchased through Washington Healthplanfinder or other minimum essential coverage for each month you (or your family members) are covered by the QSEHRA. You can enroll in or change individual health insurance coverage annually during the Open Enrollment Period. If you are newly offered a QSEHRA (for example, if you are a new employee) you may qualify for a Special Enrollment Period to enroll in or change individual coverage. Generally, you'll need to enroll in coverage within the 60 days before the date your QSEHRA starts
You may not use your QSEHRA if you enroll only in more limited coverage like a short-term limited-duration plan, plans that only cover "excepted benefits" (for example, a dental- or vision-only plan), or a health care sharing ministry.
Where can I learn more about QSEHRAs?