A Premium Tax Credit (PTC) is a federal subsidy that helps reduce the cost of health insurance premiums for eligible individuals and families who get their coverage through the HealthCare.gov exchange or a state exchange (like Covered California).
Eligibility depends on household income in relation to the Federal Poverty Level and the cost of a benchmark health plan (the second-lowest-cost Silver tier plan in the insured’s area). Those with lower incomes are eligible for a higher PTC.