What does APTC do regarding monthly premiums?

The Advanced Premium Tax Credit (APTC) plays a critical role in making health insurance more affordable for individuals and families purchasing coverage through the Health Insurance Marketplace. APTC is designed to lower the monthly premium payments for those who qualify based on their income and household size.

When individuals apply for health coverage, they may be eligible for this subsidy, which directly reduces the amount they must pay each month for their chosen health insurance plan. The financial assistance provided through APTC is calculated on a sliding scale, meaning that lower-income individuals receive a more substantial reduction in their premiums compared to those with higher incomes.

Understanding this makes it clear how APTC serves as a crucial mechanism for enhancing access to affordable health care by significantly lowering the cost burden on policyholders. The other options do not accurately describe the function of APTC; it neither increases premiums nor determines eligibility for Medicaid, nor does it leave premiums unaffected.