ACA Tax Credits & Subsidies

Question 1

What is the purpose of ACA premium tax credits?

Accepted Answer

To help make health insurance more affordable

Answer

ACA premium tax credits help lower the cost of monthly health insurance premiums for eligible individuals and families.

Question 2

How is eligibility for ACA tax credits determined?

Accepted Answer

Based on income and family size

Answer

Eligibility for ACA tax credits is based on household income and family size relative to the federal poverty level.

Question 3

What happens if a person's income changes after receiving an ACA subsidy?

Accepted Answer

Subsidies may be adjusted based on income changes

Answer

If income increases or decreases, the subsidy amount may need to be adjusted, and excess subsidies may need to be repaid when filing taxes.

Question 4

How can individuals receive ACA subsidies?

Accepted Answer

Either applied directly to premiums or as a tax credit

Answer

ACA subsidies can be applied directly to monthly premiums or received as a refundable tax credit when filing taxes.

Question 5

What is the purpose of Cost-Sharing Reductions (CSRs) under the ACA?

Accepted Answer

To reduce out-of-pocket expenses for lower-income enrollees

Answer

CSRs lower out-of-pocket costs like deductibles and co-payments for eligible individuals enrolled in Silver-tier marketplace plans.

(ACA) Affordable Care Act Certified Practice Test