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If my employer offers health insurance may I go the ACA insurance marketplace for health insurance?

If my employer offers health insurance may I go the ACA insurance marketplace for health insurance?

You can, but you will not qualify for the premium assistance credit which is the big benefit of having insurance through the marketplace. So, if your employer offers an affordable plan you would be ineligible for insurance subsidy on the marketplace. Affordable in this case means the cost of the employer's insurance does not cost more than 9.5% of your household income. If it does and you go to the marketplace for your insurance and qualify for an advanced premium credit then your employer will be hit with a substantial penalty. If the cost of your employer's insurance is less than 9.5% or you did receive an advanced premium tax credit you will have repay it when you file your tax return.

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Lee Reams, BSME, EA

Lee Reams, BSME, EA

Editor-in-Chief

Besides his role at CountingWorks as an educator and speaker to thousands of accountants nationwide, Lee manages a technical research service for a large group of tax accountants which sharpens his technical skills. Lee served on the Board of Blackline Systems, is a former Board of Director for the California Tax Education Council, is a Past President of the San Fernando Valley Chapter of Enrolled Agents, Member and Past Director for the California Society of Enrolled Agents.

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