There are two main types of subsidies that help to lower your health insurance costs: Advanced Premium Tax Credits and Cost Sharing Reductions.
If you qualify for these, Catch will let you know immediately and the premium you see will include your discounts.
Below are the definitions of each (and more information in the links above).
Advanced Premium Tax Credit (APTC)
This is a tax credit that lowers your monthly premium. The amount you can save on coverage depends on your income, the size of your family, and where you live.
Most people on marketplace coverage qualify for savings. In fact, almost 90% of people on marketplace insurance qualified for an average of over $6,000 a year in savings.
You can enroll in any metal tier plan and still receive the advanced premium tax credit.
You can see if you qualify in less than 2 minutes here.
Note: Because the advanced premium tax credit is based on reported future income, if you use more of the credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return. Similarly, if you use less of the credit than you qualify for, you’ll get the difference back as a refundable credit when you file your taxes.
To lower your risk of owing money at the end of the year, try to estimate your income as close as you can to what you believe you will earn. And keep in mind, you can always update your income throughout the year if you start earning more or less than you expected.
Learn more about estimating and reporting your income here.
Cost Sharing Reduction (CSR)
This is a discount that lowers the amount you have to pay for deductibles, copayments, and coinsurance. This will also lower your out-of-pocket maximum — the total amount you’d have to pay for covered medical services per year.
Note: CSRs are typically available for Silver tier plans only.