Benchmark plan
Updated for plan year 2026
In plain terms
A benchmark plan is the plan a subsidy is measured against. On the marketplace, the benchmark is the second-lowest-cost silver plan (SLCSP) in your area. The marketplace takes a set percentage of your income as your expected contribution, subtracts it from the benchmark's premium, and the remainder is your premium tax credit. You can spend that credit on any metal tier, but the benchmark plan, not the plan you choose, fixes its size. Because the benchmark is local, your subsidy shifts from one county to the next.
A plain example
Your benchmark plan, the second-lowest silver in your county, runs $600 a month. The marketplace says your income calls for a $250 contribution, so your credit is $350. Apply it to a $520 bronze plan and you pay $170; apply it to an $800 gold plan and you pay $450. The $350 credit never moves, only your out-of-pocket share does.
Why it matters
The benchmark is the reference point that turns your income into a dollar subsidy. Understanding that it's a specific silver plan, not whatever plan you pick, explains why buying above the benchmark costs you the full difference, and why your subsidy changes with your county.
A common point of confusion
The benchmark plan isn't the cheapest silver plan, and it isn't the plan you have to buy. It's the second-lowest silver plan, used only to calculate the credit, so you're free to apply that credit to a different plan entirely.