If you would like government assistance to afford your health care plan, there are two ways that a Subsidy Advantage/Premium Tax Credit can help. A Subsidy Advantage/Premium Tax Credit is a refundable tax credit that assists eligible individuals and families with low or moderate income to afford health care insurance.
The amount of your premium tax credit is based on a sliding scale, people who have a lower income, typically qualify for a larger credit to help cover the cost of their insurance. When you enroll with benefitbay® we will automatically check to see if you are eligible to qualify for a Subsidy Advantage/Premium Tax Credit to lower the cost of your monthly premium. You can do this as an Advance Premium Tax Credit, which would go toward your health insurance premium that you pay each month to maintain your health coverage, or you can choose to get all of the benefits of the tax credit when you file your tax return for the year.
If you choose to have advance payments of the Subsidy Advantage/Premium Tax Credit made on your behalf, you will reconcile the amount paid in advance with the actual credit you compute when you file your tax return. Either way, you will complete Form 8962, Premium Tax Credit (PTC), and attach it to your tax return for the year.
The benefitbay® platform is the only ICHRA system that allows the ability to unlock the best possible solution for all parties involved. Through the use of the proprietary Subsidy Advantage tool, employers can review the best path for employees using the estimated government subsidy and helping unlock the best purchasing power for the employee population.
If you have any questions you can always reach our support team by
clicking the blue circle bb chat bubble
Located at the lower right corner of your benefitbay® screen.