How do I lower my monthly health insurance payment with the premium tax credit?

HealthCare.gov says you find out if you qualify for the premium tax credit when you apply for Marketplace coverage. The credit lowers your premium. The amount depends on the household size and the income you put on your application [1]. You do not have to take all of it. You can use some, all or none of the credit each month. If you take it in advance, the Marketplace pays it straight to your insurance company, so you pay less each month. That is called an advance payment of the premium tax credit. If you are worried about paying advance payments back, you can use less of it, or none [1].

If your income or household changes during the year, HealthCare.gov gives the steps. Log into your Marketplace account. Select your current application. Select "Report a Life Change". Report the changes to income, household members, address and the rest. Then go through to Eligibility Results. You keep going to pick a plan, even if you are not changing plans. If you qualify, you will see "Decide how much to lower your monthly premium", and you can choose to use all, some or none [1].

There is a second, separate saving. Cost-sharing reductions lower what you pay when you get care. They apply only if you enroll in a Silver plan [2].

What it costs. The pages quoted here do not give a dollar price. We have no official average we can show you yet. The tax credit is worked out from your income and household size when you apply.

Read «How to save on your monthly insurance bill with the premium tax credit» at healthcare.gov, then check your own Marketplace eligibility notice, which prints the credit amount for your household.