Reference

ACA glossary

Plain-English definitions for the terms you'll see on the marketplace, on bills, and in this site.

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Actuarial Value (AV)
Plans

Percentage of total covered medical costs the plan pays on average. Bronze ≈ 60%, Silver ≈ 70%, Gold ≈ 80%, Platinum ≈ 90%.

Advance Premium Tax Credit (APTC)
Subsidies

Premium tax credit paid in advance to your insurer each month to lower your premium.

Allowed Amount
Costs

Maximum amount your insurer considers reasonable for a covered service.

Balance Billing
Costs

Provider billing you for the difference between charge and allowed amount. Banned by the No Surprises Act for most emergency and out-of-network situations.

Benchmark Plan
Subsidies

Second-lowest-cost Silver plan in your area. Sets the dollar value of your APTC.

CHIP
Programs

Children's Health Insurance Program. Low- or no-cost coverage for kids in households that earn too much for Medicaid.

Coinsurance
Costs

Your share of a service's cost after meeting the deductible, expressed as a percentage.

Copayment (Copay)
Costs

Fixed dollar amount you pay for a covered service, usually at the time of service.

Cost-Sharing Reduction (CSR)
Subsidies

Lowered deductibles, copays, and OOP max on Silver plans for households under 250% FPL.

Deductible
Costs

Amount you pay for covered services before your insurer starts paying.

EHB (Essential Health Benefits)
Plans

10 categories of services all marketplace plans must cover (e.g., ambulatory, hospital, maternity, mental health, Rx, pediatric).

Embedded Deductible
Costs

On a family plan, each member has their own deductible that counts toward a higher family deductible.

FFM
Marketplace

Federally Facilitated Marketplace — HealthCare.gov.

Formulary
Plans

List of drugs your plan covers, organized in tiers.

FPL
Subsidies

Federal Poverty Level — HHS-published household income thresholds used to determine subsidy eligibility.

HDHP
Plans

High-Deductible Health Plan that meets IRS rules so members can contribute to an HSA.

HRA
Employer

Health Reimbursement Arrangement. Employer-funded, tax-free account to reimburse medical expenses or premiums.

HSA
Tax

Health Savings Account. Triple-tax-advantaged personal account paired with an HDHP.

ICHRA
Employer

Individual Coverage HRA. Lets employers reimburse employees tax-free for individual market premiums instead of offering a group plan.

In-Network
Plans

Providers that have contracted with your insurer for negotiated rates.

MAGI
Tax

Modified Adjusted Gross Income. For ACA: AGI + tax-exempt interest + untaxed Social Security + excluded foreign income.

Medicaid Expansion
Programs

ACA option for states to extend Medicaid to adults up to 138% FPL with federal cost share.

Metal Tier
Plans

Bronze, Silver, Gold, or Platinum — categorizes plans by actuarial value.

Open Enrollment Period (OEP)
Calendar

Annual window when anyone can enroll or change marketplace plans. Federal for plan year 2027: Nov 1 – Dec 15 (shortened by the 2025 Marketplace Integrity Rule; no state may extend past Dec 15).

Out-of-Pocket Maximum (OOP Max)
Costs

The most you'll pay in a plan year for covered, in-network services. Premiums don't count toward this.

Premium
Costs

Monthly amount you pay for coverage, regardless of whether you use services.

QHP
Plans

Qualified Health Plan. Marketplace-certified plan covering essential health benefits.

SBE / SBE-FP
Marketplace

State-Based Exchange (runs its own platform) / State-Based Exchange on the Federal Platform (uses HealthCare.gov tech).

Special Enrollment Period (SEP)
Calendar

60-day window triggered by a qualifying life event (move, marriage, loss of coverage, etc.).

Silver Loading
Plans

Practice of loading the cost of CSRs onto Silver premiums after federal CSR payments ended in 2017. Inflates Silver premiums and APTC.

Subsidy Cliff
Subsidies

Pre-ARPA rule cutting off all APTC above 400% FPL. Suspended through 2025; may return.

The information contained on this website is for educational purposes only. We are not responsible for missing or inaccurate information. Please consult a licensed insurance broker in your state and area for insurance advice. Please consult a CPA for tax or legal advice.

The information contained on this website is for educational purposes only. We are not responsible for missing or inaccurate information. Please consult a licensed insurance broker in your state and area for insurance advice. Please consult a CPA for tax or legal advice.