Georgia Navigator Practice Exam

Under the ACA, who is eligible for premium assistance in the form of tax credits?

1. Only individuals with high incomes

2. All businesses

3. Individuals and small businesses enrolling in health plans

4. Only large corporations with employees

The correct answer is: Individuals and small businesses enrolling in health plans

Premium assistance in the form of tax credits under the Affordable Care Act (ACA) is aimed at making healthcare coverage more affordable for a specific group of individuals and small businesses. This assistance is available to individuals who meet certain income criteria—generally, those earning between 100% and 400% of the federal poverty level—when they purchase health insurance through the Health Insurance Marketplace. Small businesses are also eligible for tax credits if they offer health insurance to their employees, but this applies under different provisions than those for individual premium assistance. The objective of providing these tax credits is to reduce the financial burden of health insurance, promoting wider access to necessary healthcare services among lower and moderate-income populations. In contrast, options that suggest eligibility strictly limited to high-income individuals, all businesses, or only large corporations overlook the specific structure of the ACA’s provisions for premium assistance. The ACA was designed to assist those who are typically underserved by the healthcare market, rather than large corporations that generally have the capacity to provide health insurance benefits independently. Hence, the focus of these tax credits is indeed on individuals and small businesses participating in health plans, as indicated in the correct answer.