When shopping for an individual or family health plan on Pennie, the Health Insurance Marketplace for Pennsylvania, you may qualify for a tax credit (subsidy) from the federal government.
Understanding Tax Credits
Financial assistance is available in the form of a tax credit (or subsidy) for eligible applicants. This tax credit can be applied directly to your health insurance premium, providing you with savings right away. There are two types of tax credits available to help you pay for your health insurance:
- Premium tax credit: This lowers the monthly cost of your health insurance premium.
- Cost-share reduction: This reduces your out-of-pocket costs when you require medical care, such as your copay when visiting a doctor.
Eligibility for Tax Credits
Your income will determine if you qualify for financial assistance. The eligibility for tax credits was expanded in 2021 through the American Rescue Plan Act (ARPA) to make health coverage more affordable. These enhanced tax credits are set to expire at the end of 2025, but financial assistance will still be available for 2026 health plans at pre-ARPA levels. You can check your eligibility for a tax credit using our online ACA Subsidy Calculator. Please note that this tool is available for residents of Bucks, Chester, Delaware, Montgomery, or Philadelphia County.
If you qualify for a tax credit, you will need to enroll in an Independence Blue Cross (IBX) health plan through Pennie. If you are ineligible, you can apply directly with IBX.
Additional Information on Tax Credits
Here are some important points to keep in mind regarding tax credits and subsidies:
- You can only receive a premium tax credit if you purchase a health insurance plan on Pennie.
- To be eligible for a premium tax credit and cost-share reduction, you must enroll in a Silver CSR health plan.
- Tax credits and subsidies are not available to individuals eligible for government-sponsored programs like Medicare or Medicaid, or those with access to an affordable employer-sponsored health plan.
- If your household income differs from your estimate, you may need to pay the difference or receive a refund on your tax return.
If you need assistance in selecting the right plan for you, feel free to call us at 1-844-891-0700 (TTY: 711) Monday to Friday, 8 a.m. to 8 p.m. EST.
*An employer-sponsored health plan is deemed affordable if it covers at least 60% of required benefits or if the employee’s share of the premium does not exceed 9.5% of the employee’s income.
