Benchmark Silver Plan

The yardstick behind your subsidy

Your premium tax credit is not a fixed dollar amount. It is measured against one specific plan: the second-lowest-cost silver plan, often called the SLCSP or benchmark plan, available to your household in your area.

The formula is simple: the benchmark premium minus your expected contribution equals your credit. You can then use that credit on any Marketplace plan, from bronze to gold.

Why it matters which plan is the benchmark

The benchmark changes every year because it depends on what insurers charge. If the second-cheapest silver plan in your county gets more expensive, your credit grows, even if your income stays the same. If a new low-cost silver plan enters the market, the benchmark can drop, shrinking your credit.

That is why staying on the same plan year after year without checking can cost you. Your plan's price may rise while your credit shrinks.

Example

A 45-year-old freelancer in Tampa expects 2027 income of $45,000. Based on the 2027 applicable percentages from Rev. Proc. 2026-26, which run from 2.15% to 10.22%, the Marketplace figures what share of her income she is expected to pay toward the benchmark.

• If the benchmark silver plan costs more than her expected contribution, the gap becomes her monthly credit.
• If she buys the benchmark itself, she pays exactly her expected contribution.
• If she buys a cheaper bronze plan, the same credit covers more of the premium.
• If she buys a gold plan priced above the benchmark, she pays the credit difference plus the extra.

Where to find your benchmark

Form 1095-A, column B, lists the monthly benchmark premium used for your household. If you add or remove someone, or move, the benchmark can change. Check that column when you file, since errors flow straight into Form 8962.

Over the subsidy line

For 2027, households above 400% of the federal poverty level, such as $63,840 for one person or $132,000 for four, receive no credit regardless of what the benchmark costs. For those buyers the benchmark is no longer a factor, and the comparison is simply full-price Marketplace plans versus private options.

Marketplace vs private plans

The benchmark concept only applies to Marketplace subsidies. Private plans are priced on their own terms. Still, knowing your benchmark tells you what the government considers a typical silver plan price in your area, which is a useful reference when you compare a private quote.

For more detail, read our guides on the 2027 ACA subsidy cliff and 2027 ACA changes in Florida. Want help comparing against your benchmark? Request a quote.