Certified Application Counselor Practice Test

Premium Tax Credits (PTCs) are specifically designed to assist consumers who enroll in Qualified Health Plans (QHPs) through a Health Insurance Marketplace. The fundamental purpose of PTCs is to make health coverage more affordable by providing financial assistance to those who qualify based on their income and household size.

When individuals purchase a QHP through the Marketplace, they can apply for PTCs to help lower their monthly premiums. This support is part of the Affordable Care Act's efforts to ensure that more people can afford health insurance. Consumers who enroll in Medicaid, purchase insurance outside the Marketplace, or have private insurance do not qualify for PTCs, which explains why those options do not align with the purpose and eligibility of the credits.