9e942839_ions___Medica_Reform_Resources__nce_Premium_Tax_Credits__APTC_
[0] How does it work? [Cost-Sharing Reductions (CSR)] The CSR is paid directly to the covered individual’s health insurance carrier by the federal government. There is no option for an individual to file for cost-sharing reductions on a year-end tax return.
The APTC is paid directly to the covered individual’s health insurance carrier each month by the federal government, beginning when the individual’s enrollment begins. With this payment method, the individual does not need to wait until his or her taxes are filed in order to receive the subsidy, and does not need to pay the full cost of premiums each month. It is an option to receive the APTC this way. Covered individuals also have the option of forgoing advance payment of the tax credit to their health insurance carrier. In this case the individual would pay the full cost of monthly premiums and instead receive the tax credit in a lump sum when filing his or her federal income taxes.
Comparing Premium Tax Credits to Cost-Sharing Reductions | Medica Reform Resources
Advance Premium Tax Credits (APTC)