You May Be Eligible for a Tax Credit/Health Insurance Subsidy

If you’re shopping for an individual or family health plan on Pennie, the Health Insurance Marketplace for Pennsylvania, you may be eligible for a tax credit (subsidy) from the federal government.

What Is a Tax Credit?

Financial assistance is available for eligible applicants in the form of a tax credit (also known as a subsidy). You can choose to have your tax credit paid directly to your health insurance company, so you get the savings right away.

There are two types of tax credits to help you pay for your health insurance if you are eligible:

Premium tax credit: Lowers the monthly cost of your health insurance premium.
Cost-share reduction: Lowers your out-of-pocket costs when you need care (for example, your copay when you see a doctor).

Do I Qualify for a Tax Credit?

Depending on your income, you could qualify for financial assistance.

In 2021, Congress expanded the eligibility of tax credits (subsidies) through the American Rescue Plan Act (ARPA) to make health coverage more affordable. Unless Congress extends the enhanced tax credits, they will expire at the end of 2025.

Even if the enhanced tax credits expire, financial assistance will still be available for 2026 health plans at the pre-ARPA tax credit levels. You may still qualify for a tax credit based on your updated income and household information.

Find out if you are eligible for a tax credit using our online ACA Subsidy Calculator.

Note: You must live in Bucks, Chester, Delaware, Montgomery, or Philadelphia County to use the online calculator tool.

If you are eligible for a tax credit, you will need to enroll in an Independence Blue Cross (IBX) health plan using Pennie. If you are not eligible, apply directly with IBX.

More Information About Tax Credits

Here are some important notes to remember about tax credits and subsidies:

You can only qualify for 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 (CSR), you must enroll in a Silver CSR health plan.
Tax credits and subsidies are not available to those who are eligible for a government-sponsored program (like Medicare or Medicaid) or those who have access to an affordable employer-sponsored health plan.*
If your household income is different than what you estimated, you will need to pay the difference (if you make more than estimated) or will receive a refund (if you make less than estimated) on your tax return.

Need help determining which plan will work best for you? We can help! Call 1-844-891-0700 (TTY: 711), Monday – Friday, 8 a.m. – 8 p.m. EST. 

*An employer-sponsored health plan is considered affordable if it covers at least 60 percent of required benefits, or if the employee’s share of the premium does not exceed 9.5 percent of the employee’s income.