Health insurance subsidies reduce what you owe on a Marketplace health plan. The amount varies by household. Your credit equals the cost of the second-lowest-cost Silver plan in your county, minus the income-based contribution the federal government expects from you. Your insurer receives the difference directly.
In our review of 2026 subsidy calculations, the detail most shoppers overlook is the county-level benchmark. The benchmark Silver plan price determines how much of the premium the government covers. Two households with identical incomes can get very different monthly credits depending on where they live.
A household's advance premium tax credit (APTC) equals the benchmark Silver-tier plan premium minus its required income-based contribution. For example, if the benchmark Silver plan costs $380 and a Bronze plan costs $290, a household with a low required contribution qualifies for a $0 Bronze plan. Actual benchmark prices, required contributions and plan costs vary by county and income level.
The ACA Marketplace offers two types of health insurance subsidies.
- Premium tax credits, which reduce your monthly Marketplace premium on any metal-tier plan
- Cost-sharing reductions, which lower your deductible, copay and out-of-pocket maximum on Silver plans only





