My company provides funds for workers to buy health insurance on their own instead of providing health insurance through the company. Can I still qualify for premium tax credits to buy a Marketplace plan?

Employees who receive funds to buy health insurance on the individual market can sometimes still qualify for premium tax credits, depending on the type of health reimbursement arrangement (HRA) their employer offers and its affordability to you:

Employers with fewer than 50 workers may offer what’s known as a Qualified Small Employer HRA. If your employer offers this type of coverage arrangement and it is considered “affordable” based on your household income, you will not qualify for any premium tax credits. (For 2026, employer coverage is considered affordable if it costs you no more than 9.96% of your household income.) However, if it is considered “unaffordable,” you may qualify for tax credits, though the value of the Qualified Small Employer HRA will reduce the premium tax credit you are eligible for.

The other way your employer may offer you funds to buy insurance on your own is known as an Individual Coverage HRA, which can be offered by employers of any size. Like the Qualified Small Employer HRA, if your employer offers an Individual Coverage HRA, you cannot receive premium tax credits if it is considered “affordable.” If the Individual Coverage HRA is unaffordable, you can decline it and apply for Marketplace subsidies instead.   Note that your employer may use other names for these types of arrangements. If you’re not sure which one you are offered, contact your company’s human resources or health benefits department.