Financial Help

What are Advance Premium Tax Credits? 

Advance Premium Tax Credits (APTCs) are tax credits you can take in advance. What this means: a lower monthly health insurance payment, known as your premium. This type of financial assistance is based on your family size and income. It's only available to people who don’t get affordable health coverage offered through their employer. 

If you are eligible for APTCs, the money will go directly to your insurance company. You will pay less money each month for your health insurance.

Avoid owing money: update your household income with us whenever it changes.

The amount of APTC you receive is based on your estimated household income for the year ahead. You could face more penalties at tax time if your CoverME.gov information is out-of-date. The financial savings you get are based on household income. If your household income increases during the year, you must update your account. If you don't, you will owe money back to the federal government. This process happens at tax time, starting with 2027 federal taxes for Plan Year 2026. We call this process "reconciliation."

If you received APTCs for your CoverME.gov coverage in the last policy year, you must file your federal taxes with IRS Form 8962 included to reconcile APTCs based on any differences in estimated income and real income.

For more information, the United States Internal Revenue Service (IRS) offers a Fact Sheet with frequently asked questions (FAQs) about the Premium Tax Credit (last updated Dec. 2025).

What are Cost Sharing Reductions? 

Cost-Sharing Reductions (CSRs) are discounts that lower the amount you must pay for deductibles, copayments, and coinsurance. Cost-sharing reductions are often referred to as “extra savings.”  

If you qualify, you must enroll in a plan in the Silver category to get the extra savings. You can use a premium tax credit for a plan in any metal category, but if you qualify for a cost-sharing reduction too, you’ll get those savings only if you pick a Silver plan. 

If you qualify for CSRs, you also have a lower out-of-pocket maximum — the total amount you’d have to pay for covered medical services per year. When you reach your out-of-pocket maximum, your insurance plan covers 100% of all covered services. 

If you're a member of a federally recognized tribe or an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder, you may qualify for additional cost-sharing reductions. Visit our Information for Native Americans page to learn more.