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Premium Tax Credit (PTC)

Learn how the Premium Tax Credit (PTC) works, who qualifies, and how it affects small business owners and employees offering or receiving health benefits.
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SimplyHRA.com
Note for 2026: Clarify that ARPA/IRA PTC enhancements are scheduled to expire 12/31/2025 unless extended by Congress, and advise readers to monitor IRS and CMS updates for any legislative changes. Add context: post-2025, employees above 400% FPL will be ineligible for PTC; those below 100% FPL must satisfy affordability. Reference that ICHRA offers an alternative pathway and note the 2026 ACA affordability percentage (9.96%) so employers understand their compliance obligation.
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