Second Lowest Cost Silver Plan (SLCSP)

The Second Lowest Cost Silver Plan (SLCSP) is the reference point for the entire ACA subsidy system. Your premium tax credit is calculated based on this plan's cost, regardless of which plan you actually enroll in. The SLCSP varies by county, rating area, and enrollee age. Using the second-lowest (rather than absolute cheapest) plan provides market stability: if one insurer drops out or offers an anomalously cheap plan, it does not destabilize subsidies for the entire market. For 2026, state average SLCSP premiums for a 40-year-old range from $401/month (New Hampshire) to $1,299/month (Vermont).

Example

In your county, three Silver plans are available at $580, $625, and $710 per month. The SLCSP is $625 (the second-cheapest). Your subsidy is calculated against $625 even if you choose the $580 plan or a Bronze plan at $420. Choosing the $420 Bronze plan with a $344 subsidy means you pay only $76/month.

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Health Insurance Cost Estimation

Health insurance costs most Americans between $200 and $1,800 per month depending on age, location, income, and coverage type. The Affordable Care Act (ACA) marketplace provides subsidies (premium tax credits) that reduce costs for people earning between 100% and 400% of the Federal Poverty Level (FPL). For 2026, the subsidy formula is: Premium Tax Credit = Second Lowest Cost Silver Plan premium minus (your income times your applicable percentage, which ranges from 2.1% to 9.96%). Employer-provided coverage averages $9,325/year for single plans, with employers paying roughly 79% of the cost.