Premium tax credits are available to U.S. citizens and lawfully present immigrants who purchase coverage in the marketplace and who have income between 100 percent and 400 percent of the federal poverty level. Premium tax credits are also available to lawfully residing immigrants with incomes below 100 percent of the poverty line who are not eligible for Medicaid because of their immigration status. (Generally, immigrants must lawfully reside in the U.S. for five years before they can become eligible for Medicaid.)
In addition, to be eligible for the premium tax credits, individuals must not be eligible for public coverage—including most Medicaid, most Children’s Health Insurance Program coverage, Medicare, or military coverage—and must not have access to affordable, adequate health insurance through an employer. There are exceptions to when you can apply for premium tax credits when you have other coverage. For example, there is an exception in cases when the employer plan is unaffordable because the employee’s share of the premium exceeds 9.56 percent of the employee’s household income in 2018 (for 2017, it was 9.69 percent). There is also an exception in cases where the employer plan doesn’t provide a minimum value or actuarial value (the plan's share must be at least 60 percent of the cost of covered benefits for a standard population). (26 C.F.R. § 1.36B-2; IRS, Rev. Proc. 2017-36).