The Second Lowest Cost Silver Plan (SLCSP) is a benchmark plan used by the federal government to calculate how much Premium Tax Credit (APTC) you receive. It’s not a plan you necessarily enroll in — it’s a reference point used in the subsidy formula.
Here’s how it works: when you apply for Marketplace coverage, the government identifies the second-lowest-priced Silver plan available to you in your zip code and coverage category (individual or family). Your subsidy is calculated based on what you’d pay for that specific plan relative to your income. The actual credit amount is then portable — you can apply it toward any Marketplace plan at any metal tier.
Why the second lowest (not the lowest)? The structure is designed to ensure affordability without subsidizing the very cheapest option, which may have more limited networks or other trade-offs.
Your SLCSP is identified automatically when you apply through HealthCare.gov. You’ll also see it on your Form 1095-A, which you use to reconcile your APTC when you file taxes. If the SLCSP in your area changes (which it can year to year), your credit amount may change at renewal even if your income stays the same.
No. The SLCSP just determines how large your credit is. Once the credit is calculated, you can apply it to any Marketplace plan — Bronze, Silver, Gold, or Platinum. If you choose a plan with a lower premium than the SLCSP, you pay less out of pocket per month. If you choose a plan with a higher premium, you pay the difference.
The SLCSP is shown on your Form 1095-A, which your insurer sends by January 31 each year. You’ll use it to complete Form 8962 when filing your taxes to reconcile the advance premium tax credit you received. If you didn’t receive Form 1095-A, contact your insurer or the Marketplace.
.svg)