What Is A Subsidy Advantage/Premium Tax Credit?

If your ICHRA contribution is deemed unaffordable and you need assistance affording your health insurance coverage, you may qualify for a Subsidy Advantage (Premium Tax Credit). This is a refundable tax credit that helps eligible individuals and families with low to moderate income reduce the cost of their health insurance premiums.

The amount of your Premium Tax Credit is based on a sliding scale—the lower your income, the larger the credit you may receive. This credit is designed to make health coverage more affordable by directly lowering your monthly premium.

When you enroll through benefitbay®, our system automatically checks your affordability factor for a Subsidy Advantage / Premium Tax Credit. If you qualify, you may apply the credit toward your monthly premium as an Advance Premium Tax Credit (APTC), which is paid directly to your insurance provider each month to reduce your out-of-pocket cost.

How benefitbay® makes It easier

The benefitbay® platform is the only ICHRA system designed to unlock the best possible solution for all parties involved.
Using our proprietary Subsidy Advantage tools, employers can optimize both cost and flexibility—helping employees access the most affordable health plans while maximizing employer value.

Our system empowers employees to find the right coverage at the best price, and enables employers to make data-driven, compliant decisions with confidence.