Types of Financial Help

Covered California offers three types of financial help:

  1. Federal Tax Credits

    Federal tax credits reduce the cost of your monthly premium. It’s also called the Advanced Premium Tax Credit (APTC).

  2. State Subsidy

    The state subsidy reduces the cost of your monthly premium.

  3. Cost-Sharing Reductions

    Cost-sharing reductions are subsidies that reduce your out-of-pocket costs, such as copays, coinsurance and deductibles.

Federal Tax Credits and the State Subsidy

To qualify for federal tax credits and the state subsidy, you must:

  • Be a U.S. citizen, a U.S. national, or be lawfully present in the United States. Edit item

  • Not have access to affordable, minimum-value health insurance through an employer. Edit item

  • Not be eligible for other public health coverage, including full-scope Medi-Cal, premium-free Medicare Part A or military coverage. Edit item

  • File taxes for the year that you will receive premium assistance. Edit item

  • File taxes jointly if you are married. Edit item

  • For federal tax credits, have an annual household income between 100 and 400 percent of the federal poverty level. Edit item

  • For the state subsidy, have an annual household income between 0 and 138 percent or over 200 and up to 600 percent of the federal poverty level. Edit item

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Cost-Sharing Reductions

Cost-sharing reductions are subsidies that lower your out-of-pocket costs when you get health care, including your copays, coinsurance, deductibles and out-of-pocket maximum. Cost-sharing reductions are available to those who are eligible for premium assistance and have an annual household income up to 250 percent of the federal poverty level. If you qualify, all Silver-level plans displayed to you will include cost-sharing reductions. You must choose a Silver plan to receive reduced cost-sharing.