Glossary · Marketplace
What is a premium tax credit?
The premium tax credit lowers your monthly Marketplace plan premium. It is based on the household information and estimated income on your application.
Definition and figures from HealthCare.gov glossary, checked October 23, 2026. This page explains the term; it does not recommend a plan.
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Premium tax credit: the facts
| Item | Fact | Source |
|---|---|---|
| Based on | Household information and estimated income | HealthCare.gov glossary: Premium tax credit |
| Benchmark | The second lowest cost Silver plan premium | HealthCare.gov glossary: Second lowest cost Silver plan (SLCSP) |
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What does premium tax credit mean in health insurance?
The premium tax credit lowers your monthly Marketplace plan premium. It is based on the household information and estimated income on your application.
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Ask how premium tax credit works on your plan
Rivvi explains the term from public CMS, Medicare.gov, and HealthCare.gov sources and works through an example with your numbers.
Expand my textFree to start. Opens Rivvi, the AI workspace for healthcare teams.
2M+ interactions500K+ patientsHIPAA BAA