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Covered CA

Are individuals enrolled in retiree coverage eligible for the premium tax credit?

Individuals enrolled in an employer-sponsored plan, including retiree coverage, are not eligible for the premium tax credit, even if the employer plan is unaffordable or fails to provide minimum value. The individual may be eligible for a premium tax credit for another family member who enrolls in Marketplace coverage and is not enrolled in the employer plan

The individual may be eligible for the premium tax credit if the individual declines the coverage from a former employer, such as COBRA or retiree coverage, even if it is affordable and provides minimum value.