Your total monthly premium is the full cost of your health insurance plan before any subsidies are applied. It’s the sticker price your insurer charges for coverage each month.
Most people on the ACA Marketplace don’t pay the total monthly premium directly. If you qualify for an Advance Premium Tax Credit (APTC), that credit is applied to your bill automatically, and you only pay the difference. The total monthly premium is still important to know because:
When shopping on the Marketplace, always look at both the total monthly premium and your net premium after subsidy. A plan with a high total monthly premium may end up cheaper than one with a lower sticker price if it attracts a larger subsidy.
The total monthly premium is what the plan actually costs before any financial assistance. Your net premium is what you pay after your Advance Premium Tax Credit (APTC) is applied. If you qualify for subsidies, your net premium can be significantly lower — sometimes $0. Always compare net premiums when evaluating plans on the Marketplace.
Your premium is fixed for the plan year once you enroll. However, if your income or household size changes and you update your Marketplace application, your APTC may be adjusted — which changes your net premium. The insurer’s base rate (the total monthly premium) stays the same.
.svg)