ACA-specific terms
Premium tax credit (PTC)
An ACA subsidy that reduces marketplace plan premiums for households earning roughly 100-400% of FPL (with extended eligibility under the American Rescue Plan and Inflation Reduction Act through 2025; 2026+ rules subject to legislative changes). Calculated as the difference between what you pay and the cost of the second-lowest-cost Silver plan.Last reviewed: · TMRW Benefits is a benefits brokerage, not a tax or legal advisor. Consult a CPA or attorney for situation-specific guidance.
Related terms
Subsidy cliff
Income threshold where ACA subsidies disappear.
Read definitionFPL (Federal Poverty Level)
Federal income threshold defining poverty.
Read definitionMetal tier
ACA marketplace plan classification by actuarial value.
Read definitionMarketplace
ACA exchange where individuals shop for plans.
Read definitionMore in ACA-specific terms
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