Get the Right Financial Help in the Form of an Advanced Premium Tax Credit
Premium assistance, also called Advanced Premium Tax Credits (APTC), can lower the cost of health care for individuals and families who enroll in a Covered California health plan and meet certain income requirements. The amount of premium assistance you receive is based on how much money you make, your tax household size and where you live.
Because the amount of premium assistance you receive is based on information that can change during the year, it’s important to keep Covered California updated about these changes so that your premium assistance can be adjusted if needed.
What do I do if I have a change in my income or application information at renewal or during the year?
During renewal, you can update your information at any time. Outside of renewal, you must report the change to Covered California within 30 days.
At any time, if Covered California asks you to provide documents that verify your income, you must do so by the date listed on your notice.
To update your income or information safely and securely, you can log in to your Covered California online account. If you don’t already have an online account, we recommend that you create one.
You can also contact your Certified Insurance Agent or Certified Enrollment Counselor, or call Covered California at (800) 300-1506 (TTY: [888] 889-4500) and a service center representative will assist you to make the change in your account.
It is possible that you will qualify for more premium assistance than you received because at the end of the year your income was lower or your tax household size was larger than what you reported to Covered California. If this happens, you may get money back when you file your taxes.
It is also possible that you qualify for less premium assistance than you received because at the end of the year your income was higher or your tax household size was smaller than what you reported to Covered California. If this happens, when you file taxes you will have to repay the extra amount you received.
What can I do to avoid owing money when I file my taxes?
If you are worried about owing money at tax time, you can choose to take less of the premium assistance each month. Your monthly premiums will still be lower, but not as much. By taking less premium assistance during the year, there is less chance you will owe back money at tax time.
You can also choose to pay the full premium amount each month. If you choose this option, the tax credit would be applied toward any taxes you owe — or you would get a bigger refund.