If ‘I don’t want the second lowest cost Silver plan’ was the first thing you thought when reading that headline you probably think the SLCSP doesn’t affect you – but here are three things you really do need to know about it.
- The Second Lowest Cost Silver Plan available to you is the benchmark used to calculate the Advance Premium Tax Credit you will receive – in fact, APTC cannot be calculated without the SLCSP. Granted, this is usually done behind the scenes by the nice computer – but an incorrect SLCSP can reduce or even deny your APTC.
- The Second Lowest Cost Silver Plan isn’t the same for everyone – like all insurance plans, the premium and even the type of plan available are determined by where you live – most often by zip code. Your friend across the street who happens to have a different zip code may not even have the same SLCSP available – or may receive a very different premium from yours even though he’s the same age and gender as you!
- The SLCSP can be incorrect – and that can cost you money. This is the most difficult thing about the process to check – but there are ways. The most obvious are make sure your details are correct – zip code and date of birth especially – when you are running a calculation, using a plan finder and most especially when you are enrolling. Take a moment and find the SLCSP on either the plan finder or in the enrollment and screen print it – then save that page where you can find it. 99% of the time, you’ll never need it again – but if there is an error with the SLCSP this will be invaluable in proving it later.