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What is a Second Lowest Cost Silver Plan (SLCSP) in Health Insurance?
<lingo>The Second Lowest Cost Silver Plan is used by the IRS to calculate eligibility for cost assistance when purchasing health insurance through the Health Insurance Marketplace. The Second Lowest Cost Silver Plan, or SLCSP, is the second-lowest priced Silver Plan available in the state where you live. The IRS uses the cost of the SLCSP to calculate Premium Tax Credits. While you don't need to choose the Second Lowest Cost Silver Plan to benefit from cost assistance, you will need to know the ​SLCSP in order to determine your Premium Tax Credit when you file your federal income taxes.</lingo>
Second Lowest Cost Silver Plan ​Explained
Health insurance plans are categorized into four tiers: Bronze, Silver, Gold and Platinum. Known as "metal levels," these tiers are based on the way costs are split between you and the insurance company. Silver Plans fall into the middle; with a Silver Plan, you should expect to pay moderate premiums and moderate out-of-pocket costs when you need care.
<twitter>The Second Lowest Cost Silver Plan is used by the IRS to calculate eligibility for cost assistance when purchasing health insurance through the Health Insurance Marketplace. </twitter>
The Second Lowest Cost Silver Plan, or SLCSP, is the Silver Plan that offers the second lowest monthly premium cost in your area. The cost of this plan is used as a baseline in order to determine cost assistance limits. You will need to know the SLCSP when you're calculating the Premium Tax Credit on your annual income taxes.
Usually, the Marketplace will send you the SLCSP for your area on ​Form 1095-A before tax time. If you don't receive the form — or if the number is missing or incorrect — you can look the SLCSP up yourself using the Marketplace's online tax tool.
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