My employer’s workplace wellness program increases premiums for employees who don’t participate and/or can’t meet certain targets for healthy behavior. Can I leave my employer-sponsored plan and get Marketplace coverage?

Yes, you can leave your employer-sponsored plan and get Marketplace coverage but your eligibility for premium tax credits depends on how much you must pay in premiums for your employer-based plan. If your premiums with the wellness penalty would be 8.39 percent of your income or more in 2024 (9.12 percent in 2023), or if your cost-sharing increases are high enough to lower the value of your plan below the minimum value standard (60 percent of average costs of covered services), then you may be eligible for premium tax credits. This test applies whether you are actually penalized or not, and in advance of the penalty being applied (for example, if your employer gives you time to try to meet the health standard that triggers a penalty or reward). (26 C.F.R. § 1.36B-2(c)(4); 26 C.F.R. § 1.36B-6(a)(c)(2); IRS Revenue Procedure 2023-29).