Skip to main content

Health Insurance Premium Tax Credits

In 2021, Congress passed the American Rescue Plan Act (ARPA) in response to the COVID-19 pandemic. ARPA significantly expanded premium subsidies for individual and family qualified health plans through 2022. In August of 2022, Congress passed the Inflation Reduction Act (IRA), which will continue ARPA’s enhanced subsidies through 2025. These subsidies come in the form of premium tax credits for eligible consumers.

Do you purchase your own individual or family health insurance plan? 

If you answered yes, you might be eligible for premium tax credits to help reduce your premium costs, even if you were previously ineligible based on your income. As a result of ARPA and the IRA, premium tax credits are now available to eligible Vermonters with much higher incomes than before:*

Who is covered by the plan? Income threshold in 2022* Income threshold in 2023*
Single $105,770 $118,740
Couple $211,540 $237,481
Parent and Child(ren) $204,137 $229,168
Family $297,215 $333,660
* Note that the premium tax credits are only available to eligible people who enroll in a plan through Vermont Health Connect and are not available to people who are enrolled directly through Blue Cross and Blue Shield of Vermont (BCBSVT) or MVP. As explained below, if you enrolled in your plan directly through BCBSVT or MVP, you can transfer your plan to Vermont Health Connect and receive the premium tax credits. 

    How do these premium subsidies help Vermonters? 

    To date, premium subsidies have provided over $30 million to more than 23,000 Vermonters. These funds have helped individuals and families afford their insurance premiums. Furthermore, the tax credit helps protect consumers from premium increases because it gets larger as premiums rise. 

    The amount people can save as a result of the premium tax credit can be hundreds of dollars each month. For example, in 2022, a single person making $60,000 a year may save $324 each month through Vermont Health Connect, while a family making $100,000 a year may save $1,396 or more each month (more information here). 

    Frequently Asked Questions

    Yes, the premium tax credits may be coupled with other subsidies from the state and federal government to further lower premiums and reduce out-of-pocket costs. 

    Financial Help Information

    Vermonters can use the Vermont Health Connect Plan Comparison Tool starting mid-October, 2022, to compare plans for 2023. Open enrollment for 2023 plans begins November 1, 2022. 

    You can also contact Vermont Health Connect by phone at 1-855-899-9600 or online.

    For questions about your health insurance or health care access, you can contact Vermont Legal Aid’s Office of the Health Care Advocate at 1-800-917-7787.

    Plan Comparison Tool

    Right now, approximately 5,500 Vermonters are currently enrolled in a family or individual plan directly through BCBSVT or MVP. 

    Are you one of these 5,500 Vermonters? If so, you could still save money in 2022 if you meet the eligibility requirements.

    • Instructions for Direct-Enrolled Customers: There’s still time to sign up for health insurance through Vermont Health Connect to get the premium tax credit for the rest of the year. If you are a Direct-Enrolled Consumer who decides to sign up for your current plan through Vermont Health Connect, you will not lose credit for any payments previously made toward your deductible or out-of-pocket limit. 

    Vermont Health Connect has instructions for customers who are already enrolled in a qualified health plan directly through the health insurance company (BCBSVT or MVP). 

    Instructions for Direct-Enrolled Customers

    To see if you qualify for the subsidy, visit the Vermont Health Connect Plan Comparison Tool

    The ARPA and IRA subsidies described on this page are specific to individual and family qualified health plans, which are not available to individuals who are enrolled in Medicare. 

    Medicare Information

    If you are eligible for the premium tax credit, you can choose to receive it in advance, which will reduce what you pay in premiums each month, or at the end of the year when you file taxes. You may also combine these options. More details are available on the Vermont Health Connect Advance Premium Tax Credit page.