What are "premium tax credits" designed for?

Premium tax credits are designed to provide financial assistance to lower-income individuals and families, making health insurance more affordable. These credits reduce the amount that eligible individuals must pay out-of-pocket for their monthly premiums when purchasing coverage through the Health Insurance Marketplace established by the Affordable Care Act (ACA). By lowering the cost of insurance premiums, premium tax credits aim to increase access to health insurance for those who might otherwise be unable to afford it, thereby promoting broader coverage and improving health equity.

The creation of premium tax credits reflects a specific policy decision to support vulnerable populations, helping to ensure that health care is accessible to all, regardless of income level. This is aligned with the ACA's goal to reduce the number of uninsured individuals and improve overall public health outcomes.