What is the purpose of Advanced Premium Tax Credits (APTC) in the ACA Marketplace?

• A. To increase a qualifying consumer’s monthly premium for a Marketplace plan.
• B. To reduce a qualifying consumer’s monthly premium for a Marketplace plan.
• C. To apply only to employer-sponsored plans.
• D. To fund dental coverage for dependents.

Answer: (B)

APTCs are meant to lower the monthly cost of a Marketplace health plan for people who qualify based on income. The amount is calculated from your household income and family size, and it’s paid in advance to the insurer to reduce the monthly premium you owe. You can still reconcile the credit when you file taxes, which can adjust the amount up or down if your income was different than estimated. These credits apply to plans purchased through the ACA Marketplace, not to employer-sponsored coverage, and they’re not intended to fund dental coverage for dependents. The overall purpose is to make Marketplace plans more affordable by sharing the cost with the government.