Certified Application Counselor Practice Test

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Prepare for the Certified Application Counselor Test. Review questions and topics, with detailed explanations and essential concepts to ace your exam. Enhance your confidence and readiness today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Consumers eligible for Premium Tax Credits can reduce which of the following?

Income tax rates
Health insurance premiums
Loan interests
Real estate taxes

The correct answer is: Health insurance premiums

Consumers eligible for Premium Tax Credits can reduce health insurance premiums. Premium Tax Credits are designed to make health insurance more affordable under the Affordable Care Act. These credits are specifically applied to the costs of premiums for health plans purchased through the Health Insurance Marketplace. By reducing the amount that consumers need to pay out-of-pocket for their monthly premiums, the credits help increase accessibility to health coverage and lower the overall cost of insurance for those who qualify based on their income and family size. The other options do not pertain to Premium Tax Credits. For example, income tax rates are determined by tax brackets and not directly influenced by health insurance premiums. Similarly, loan interests and real estate taxes are separate financial obligations not affected by health insurance credits. Thus, the focus of Premium Tax Credits is solely on making health insurance more affordable through premium reductions.