What financial assistance does the ACA provide to eligible individuals purchasing insurance on the marketplace?

The Affordable Care Act (ACA) provides financial assistance in the form of tax credits to eligible individuals purchasing insurance on the marketplace. These tax credits are designed to make health insurance more affordable for low- and moderate-income individuals and families. The amount of tax credit is based on a person's or family's income in relation to the federal poverty level, allowing many to significantly reduce their monthly premium costs when they buy health insurance.

This support is crucial because it directly impacts the affordability of coverage, thereby increasing the likelihood that individuals will obtain insurance, which aligns with the goals of the ACA to expand access to health care. Unlike loans or direct cash payments for healthcare expenses, tax credits help lower the cost of premiums rather than adding debt or providing financial support for out-of-pocket expenses. Therefore, the correct answer highlights the ACA’s primary mechanism for making coverage accessible through financial assistance.