The Second Lowest Cost Silver Plan (SLCSP) is a specific health insurance plan available through the Health Insurance Marketplace. It is the silver-level plan with the second-lowest premium available to you and your covered family members in your area.
The SLCSP plays an important role because it's used to calculate your Premium Tax Credit (PTC). However, you do not need to enroll in the SLCSP to qualify for the credit.
What Is a Silver Plan?
Marketplace health insurance plans are generally grouped into four metal levels:
- Bronze
- Silver
- Gold
- Platinum
Each level offers a different balance between monthly premiums and out-of-pocket costs. Silver plans are used as the benchmark for calculating the Premium Tax Credit.
Why Is the SLCSP Important?
When you purchase health insurance through the Marketplace, the Premium Tax Credit is based on the cost of the SLCSP available in your rating area.
The Marketplace uses the SLCSP to determine the maximum amount of Premium Tax Credit you may qualify for based on your household income and family size.
Even if you enroll in a different Marketplace plan, the SLCSP is still used as part of the credit calculation.
Do I Have to Enroll in the SLCSP?
No. You can enroll in any Marketplace plan that meets your needs.
For example:
- If you choose a more expensive plan, such as a Gold or Platinum plan, you can apply your Premium Tax Credit toward the premium and pay the remaining cost yourself.
- If you choose a lower-cost plan, such as a Bronze plan, your Premium Tax Credit may cover a larger portion of the premium.
Your tax credit is generally limited by the cost of the plan you actually enrolled in and the amount calculated using the SLCSP.
How Is the Premium Tax Credit Calculated?
The Premium Tax Credit calculation generally follows these steps:
- Calculate your household income.
- Determine your household income as a percentage of the Federal Poverty Level (FPL).
- Calculate your expected household contribution toward health insurance.
- Determine the annual premium for the SLCSP available to you.
- Subtract your expected contribution from the SLCSP premium.
- Compare that amount to the premiums for the Marketplace plan you actually purchased.
- The allowable Premium Tax Credit is generally the lower of those amounts.
Because the calculation is based on income, household size, filing status, and Marketplace information, the exact credit amount varies from one taxpayer to another.
Where Do I Find My SLCSP Information?
Most taxpayers who received advance Premium Tax Credit payments will find the SLCSP information reported on Form 1095-A, Health Insurance Marketplace Statement.
Specifically, the monthly SLCSP amounts are generally shown in Part III, Column B of Form 1095-A.
If Column B is blank or incorrect, you may need to obtain the correct SLCSP information from the Marketplace before completing your tax return.
How Do I Enter SLCSP Information in the Program?
If you received Form 1095-A:
- Go to Health Insurance in the program.
- Answer Yes when asked if you purchased insurance through HealthCare.gov or a state Marketplace.
- Answer Yes when asked if you received Form 1095-A.
- Enter the information shown on the form, including the SLCSP amounts reported in Column B.
The program will use the information from Form 1095-A to complete Form 8962, Premium Tax Credit, and calculate any credit you're entitled to receive or any advance credit repayment that may be required.
2026 Tax Year Guidance
For tax year 2026 returns filed in 2027, taxpayers who received Marketplace coverage should wait until they receive Form 1095-A before filing their federal tax return.
The SLCSP information reported on Form 1095-A is required to accurately calculate and reconcile the Premium Tax Credit. Filing without this information can delay processing of your return or require corrections later.
Key Takeaway
The Second Lowest Cost Silver Plan (SLCSP) is the benchmark health insurance plan used to calculate the Premium Tax Credit. You don't have to enroll in the SLCSP to qualify for the credit, but its premium is a key part of the calculation. If you purchased coverage through the Marketplace, be sure to enter the information from Form 1095-A accurately so the program can determine the correct credit amount.
For additional information regarding the SLCSP, please click here.