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Ways to save on ACA health insurance

Learn how premium tax credits and cost-sharing reductions can lower the cost of ACA Marketplace health coverage.

Health insurance doesn’t have to cost as much as you might expect. Many people qualify for financial help that can lower the cost of coverage, either by reducing their monthly premium, what they pay when they get care, or both.

These savings are based on your household size and income. And you don’t need to figure it all out yourself – we’ll help check what you may qualify for when you apply.

How you can save on ACA health coverage

Most people qualify for savings in one of two ways. Premium tax credits can lower what you pay each month, while cost-sharing reductions can lower what you pay when you receive care.

If you want to lower...Savings program
Your monthly premiumPremium tax credits
Your deductibleCost-sharing reductions
Your copaysCost-sharing reductions
Your coinsuranceCost-sharing reductions
Both monthly premiums and out-of-pocket costsPremium tax credits and cost-sharing reductions

Depending on your household size and income, you may qualify for one or both types of Marketplace savings. Learn more about each option.

Lower your monthly premium

Premium Tax Credits (PTCs)

Premium tax credits can lower what you pay each month for health insurance. If you qualify, most people choose to use this savings right away to reduce their monthly bill.

PTCs are available to many individuals and families based on income and household size.

Learn more about premium tax credits

Pay less when you get care

Cost‑Sharing Reductions (CSRs)

Cost‑sharing reductions help lower out‑of‑pocket costs like deductibles, copays and coinsurance. These savings are available to eligible households that enroll in a Silver health plan.

CSRs can make a big difference in what you pay when you see a doctor, fill prescriptions or need care.

Learn more about cost-sharing reductions

You might qualify for one – or both

Some people qualify for both premium tax credits and cost‑sharing reductions. Others may qualify for just one.

Eligibility depends on:

  • Your household size
  • Your estimated household income for the year

You don’t have to decide this ahead of time. Eligibility is determined during the application process.

How to find out what you qualify for

Finding out whether you qualify for savings is built into the application process.

Here’s how it works:

  1. Get a quote for ACA health coverage during Open Enrollment or, if eligible, a Special Enrollment Period
  2. Provide household and income information
  3. Your eligibility for savings is determined automatically
  4. You can see plans and savings options available to you

Check your eligibility and explore plans

Frequently asked questions

Financial help is available when you apply for coverage, during Open Enrollment or if you qualify for a Special Enrollment Period due to a life event.

Yes. Many people who buy coverage through the Marketplace can qualify for both a premium tax credit (PTC) and cost-sharing reductions (CSRs) at the same time.

The two benefits help with different costs:

  • Premium tax credits lower your monthly insurance premium.
  • Cost-sharing reductions lower your out-of-pocket costs, such as deductibles, copays, coinsurance and your annual out-of-pocket maximum.

Premium tax credits are tied to your income for the year and may be reconciled when you file taxes. You can learn more about this on our premium tax credit page.

If your income or household size changes during the year, your premium tax credit may need to be adjusted. Reporting changes to the Marketplace as soon as they happen can help keep your monthly costs accurate and reduce surprises at tax time.

To find out if you qualify, start with a quote. Using your household size and estimated yearly income, you'll see whether you're eligible for premium tax credits, cost-sharing reductions, or both.

It depends on which Marketplace savings you received.

Premium Tax Credits (APTC)

If you used advance premium tax credits to lower your monthly premium, you must reconcile them when you file your federal tax return. You'll compare:

  • The tax credit you received during the year.
  • The tax credit you were actually eligible for based on your final income and household size.

As a result:

  • If you received more premium tax credit than you qualified for, you may have to repay some or all of the excess.
  • If you received less than you qualified for, you may get an additional refund or tax credit.

Cost-Sharing Reductions (CSRs)

If you received cost-sharing reductions, which lower deductibles, copays and other out-of-pocket costs on a Silver plan, you generally do not repay those savings through your tax return. CSRs are not reconciled the same way premium tax credits are.

Maybe. If your employer offers health coverage that is considered affordable and meets minimum value requirements, you generally won't qualify for Marketplace premium tax credits. However, you may still qualify if the employer coverage is unaffordable or doesn't meet minimum value standards. In some cases, family members may qualify for Marketplace savings even if the employee does not.

ACA subsidies guide

Fill out this form and get immediate access to our ACA subsidies guide, "How to save when shopping for health coverage."

Unlock savings with tax credits

Discover how Premium Tax Credits work and find out if you qualify in minutes.

Learn more about Premium tax credits