Certified Application Counselor Practice Test

How do consumers obtain Premium Tax Credits (PTCs)?

1. By enrolling in Medicaid

2. By filing taxes

3. By applying directly at a Marketplace

4. By receiving employer-sponsored insurance

The correct answer is: By filing taxes

Premium Tax Credits (PTCs) are designed to help lower-income individuals and families afford health insurance coverage purchased through the Health Insurance Marketplace. The mechanism by which consumers obtain PTCs primarily involves their application during the enrollment process in the Marketplace, rather than directly through tax filing. To qualify for PTCs, consumers must apply for coverage through the Health Insurance Marketplace, detailing their income and household size. Based on the information provided, the Marketplace calculates the amount of PTCs for which the individual or family is eligible. While consumers do need to file taxes in order to reconcile these credits and potentially receive any excess credits as a refund, the initial step to receive the credits is through the application process, not the act of filing taxes. The correct approach to obtaining PTCs is to apply directly at the Marketplace, where their eligibility is evaluated, and the credits are determined based on their specific situation. This process ensures that the assistance provided aligns with consumers’ financial realities as assessed during their Marketplace application.