How To Use A Premium Tax Credit To Save On Your Health Insurance

The Health Insurance Marketplace will tell you whether you qualify for a "premium tax credit" that reduces your monthly insurance premiums.

In your Marketplace application, you need to estimate your household income for 2022 in order to calculate the amount of your premium tax credit.

Each month, you can apply your tax credit to a portion or all of your insurance premiums. Having your tax credits sent directly to your insurance company will result in a lower monthly premium for you.

In this case, we refer to it as paying the premium tax credit in advance.

A Change In Income Will Also Affect Your Premium Tax Credit

The premium tax credit is likely to change based on your income or whether or not you add or lose family members.

A household income and income level change must be reported immediately to the Marketplace.

• When your income increases or you lose a family member, you're likely to qualify for a lower premium tax credit. Your tax credit may be reduced if you take it in advance each month. Taking fewer credits than you qualify for prevents you from taking more than you qualify for.
• It is likely that you will qualify for a larger premium tax credit if your income drops or you gain a household member. Your premium bill might be lower if you take more of the tax credit in advance.

Contact Us To Answer Any Additional Questions

See if you or your family qualify for each benefit with Insurance ‘n You. We can answer your questions about health insurance changes in your household. Get health insurance help at 1-800-586-9138