What Is a Benchmark Plan? The SLCSP, Explained
A benchmark plan is the second-lowest-cost Silver plan (SLCSP) offered through the Marketplace where you live. Its price sets the size of your premium tax credit. You don’t have to buy it.
Shop 2027 Plans or Call ↓Benchmark Plan (SLCSP): The Short Definition
Definition: The benchmark plan is the second-lowest-cost Silver plan available through the Marketplace for the people in your household who are enrolling. The IRS calls it the second lowest cost silver plan, or SLCSP. Your premium tax credit is generally the benchmark plan’s premium minus a set share of your household income.
Updated November 11, 2026. Figures are for 2027 coverage under current law.
The benchmark is a measuring stick, not a plan you must pick. You can use your credit on a Bronze, Silver, Gold or Platinum plan sold through the Marketplace, though not on a catastrophic plan.
Why the Benchmark Plan Matters for What You Pay
Your credit is built from two numbers: the benchmark premium in your area and your expected contribution. For 2027, the expected contribution runs from 2.15% to 10.22% of household income, depending on where your income falls between 100% and 400% of the federal poverty level (IRS Rev. Proc. 2026-26). Above 400%, there is no credit under current law.
- Pick a plan that costs less than the benchmark and you pay less than your expected contribution.
- Pick a plan that costs more and you pay the difference on top.
- The credit has a ceiling. The IRS says it can’t be more than the premium for the plan you enroll in.
- Location matters. The benchmark is set by Silver prices in your area, so the same income can lead to very different credits in two ZIP codes.
A 2027 Example: Family of Four Earning $66,000
A family of four earning $66,000 is at 200% of the federal poverty level for 2027 coverage. (For four people in the 48 contiguous states and DC, 100% is $33,000.) At 200%, the IRS table sets the expected contribution at 6.78% of income.
| Step | Number |
|---|---|
| Household income | $66,000 (200% FPL for a family of four) |
| Expected contribution for 2027 | 6.78% of income |
| Per year | About $4,475 |
| Per month | About $373 |
| Premium tax credit | The benchmark premium in their county, minus about $373 a month |
If the benchmark plan in their county costs more than about $373 a month, the credit covers the gap. If the family picks a plan that costs less than the benchmark, they pay less than $373 by that same difference. If they pick one that costs more, they pay the difference on top.
One more case. A single person earning $63,840 (400% FPL) is expected to pay 10.22% of income, about $544 a month, toward the benchmark plan. At $63,841, there is no credit under current law.
These are expected payments toward the benchmark plan, not quotes. Actual premiums vary by plan, age and ZIP code. Figures use the 2026 poverty guidelines and the IRS 2027 table. For your own numbers, use the 2027 ACA subsidy calculator.
To see plans where you live and check whether you may qualify for a tax credit, call (844) 788-3733 or shop and enroll online below.
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