Learn How Premium Tax Credits May Help You Save
What is a Premium Tax Credit for Health Insurance?
When you enroll in a Marketplace Health Insurance plan, you may have the opportunity to save on your monthly premium with a Health Insurance Tax Credit, also known as the Premium Tax Credit (PTC) or health coverage subsidy. The PTC helps lower the cost of health insurance through the Health Insurance Marketplace for eligible individuals and families who qualify. The federal government operates the Health Insurance Marketplace for some states, and other states operate their own marketplace.
Health insurance premium tax credit eligibility is based on household income and family size (including you, your spouse – if married – and anyone you will claim as a tax dependent, even if they do not need health coverage). If you qualify for premium tax credits, you may be able to lower or eliminate your monthly premium.
When was the Premium Tax Credit Implemented?
The Premium Tax Credit (PTC) was implemented as part of the Affordable Care Act (ACA), which was signed into law by President Barack Obama on March 23, 2010. Both the PTC and Health Insurance Marketplace were key provisions of the ACA designed to provide financial assistance to individuals and families to help them afford health insurance. The PTC has been available since the Marketplace launched in 2014 and is an important tool in making healthcare more accessible for millions of Americans.
How Does the Premium Tax Credit Work?
The government uses a household income-based calculation to determine the amount of your health insurance premium tax credit. This means the amount of the PTC you qualify for depends on the estimated household income you enter on your Marketplace application and the cost of health coverage in your area. The health care tax credit helps reduce the amount you spend on your monthly health insurance premium.
Using the Premium Tax Credit to Lower Premium Costs
When you apply for Marketplace insurance, you will find out if you qualify for a PTC, including the estimated amount, which is then paid to the insurance provider you choose, reducing or eliminating your monthly premium. The amount of the tax credit is based on a household income scale, so those who have a lower income typically qualify for a larger PTC. Once the amount of your credit is determined, you can opt to use some or all of it as an Advance Premium Tax Credit, automatically reducing your monthly premium throughout the year, or claim it as a refund when you file your tax return the following year.
Find The Right Plan For You and Your Family
When you understand how tax credits work for health insurance, you can better leverage programs (if you meet eligibility requirements) to make your health coverage premiums more affordable. Anthem can help you find Marketplace insurance options that work for you and your family.
Compare health insurance plans and find one that fits your needs.
Anthem Blue Cross and Blue Shield es el nombre comercial de: En Colorado: Rocky Mountain Hospital and Medical Service, Inc. Los productos HMO son suscritos por HMO Colorado, Inc. En Connecticut: Anthem Health Plans, Inc. En Indiana: Anthem Insurance Companies, Inc. En Georgia: Blue Cross Blue Shield Healthcare Plan of Georgia, Inc. y AMGP Georgia Managed Care Company, Inc. En Kentucky: Anthem Health Plans of Kentucky, Inc. En Maine: Anthem Health Plans of Maine, Inc. En Missouri (excluyendo 30 condados en el área de Kansas City): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC) y HMO Missouri, Inc. RIT y ciertas filiales administran beneficios que no son HMO, suscritos por HALIC, y beneficios HMO, suscritos por HMO Missouri, Inc. RIT y ciertas filiales solo prestan servicios administrativos para planes autofinanciados y no suscriben beneficios. En Nevada: Community Care Health Plan of Nevada, Inc. y Rocky Mountain Hospital and Medical Service, Inc. Los productos HMO son suscritos por HMO Colorado, Inc., que opera bajo el nombre comercial (dba) HMO Nevada. En New Hampshire: Anthem Health Plans of New Hampshire, Inc. Los planes HMO son administrados por Anthem Health Plans of New Hampshire, Inc. y suscritos por Matthew Thornton Health Plan, Inc. o por Anthem Health Plans of New Hampshire, Inc. En 17 condados del sureste de Nueva York: Anthem HealthChoice Assurance, Inc. y Anthem HealthChoice HMO, Inc. En estos mismos condados, Anthem Blue Cross and Blue Shield HP es el nombre comercial de Anthem HP, LLC. En Ohio: Community Insurance Company. En Virginia: Anthem Health Plans of Virginia, Inc. opera bajo el nombre comercial de Anthem Blue Cross and Blue Shield, y su afiliada HealthKeepers, Inc. opera bajo el nombre comercial de Anthem HealthKeepers, brindando cobertura HMO; su área de servicio abarca todo el estado de Virginia, a excepción de la ciudad de Fairfax, el pueblo de Vienna y el área al este de la Ruta Estatal 123. En Wisconsin: Blue Cross Blue Shield of Wisconsin (BCBSWI) suscribe o administra pólizas PPO y de indemnización, y suscribe los beneficios fuera de la red en las pólizas POS ofrecidas por Compcare Health Services Insurance Corporation. Compcare suscribe o administra pólizas HMO o POS. Licenciatarios independientes de la Blue Cross and Blue Shield Association. Anthem es una marca registrada de Anthem Insurance Companies, Inc.
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