ICHRA and the ACA subsidy cliff: when it beats the marketplace
An ICHRA (Individual Coverage Health Reimbursement Arrangement) lets a business reimburse employees — including an owner via an S-corp, or a spouse’s employer — for individual health premiums with pre-tax dollars.
Why it can beat the cliff
Pre-tax premium reimbursement can be worth more than a marketplace subsidy for households above 400% FPL — and you can’t take both the premium tax credit and an ICHRA for the same month, so the comparison matters.
Who it fits
Self-employed with an S-corp, or a household where one spouse’s employer offers an ICHRA. A licensed broker can price ICHRA vs. marketplace-plus-strategy for your numbers.
Frequently asked
Can I take an ICHRA and an ACA subsidy?
Not for the same months. If your ICHRA is considered affordable you must waive the premium tax credit. That's why the ICHRA-vs-subsidy comparison is the whole game for households near the cliff.
Talk to a licensed broker about your options
Free, no obligation. A broker can price your 2026 plans and the strategy moves for your exact situation.
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