Premium Tax Credit (PTC)

The premium tax credit (PTC) assists eligible households by lowering the amount of their health insurance premium when they purchase a Qualified Health Plan on the marketplace (NY State of Health). The PTC offsets the amount of the health plan’s premium in the form of a tax credit.

The American Rescue Plan Act (ARPA) of 2021 temporarily expanded eligibility for the PTC by eliminating the rule that an individual with household income above 400% FPL cannot qualify for a premium tax credit. The Inflation Reduction Act of 2022 will continue waive the income of 400% FPL for an additional three years, through 2025, meaning that those with incomes above 400% FPL can continue to claim the PTC if otherwise eligible.

To qualify for the PTC, the consumer must

• Purchase a qualified health plan (QHP) on the New York State of Health, Marketplace,
• Not be eligible for public health coverage (Medicare, Medicaid, Essential Plan, or Child Health Plus) or enrolled in Veteran’s health coverage,
• Not have access to health insurance through an employer and
• Be a U.S. citizen or an individual who is lawfully present.

For more information go to https://www.kff.org/policy-watch/nine-changes-to-w....