What happens to individuals who do not qualify for Medicaid but cannot afford insurance?

Individuals who do not qualify for Medicaid but cannot afford insurance may receive premium tax credits or subsidies through the Marketplace. The Affordable Care Act established these subsidies to help make health insurance more affordable for low- to middle-income individuals and families.

When people apply for insurance through the Health Insurance Marketplace, they provide information about their income and household size. If their income is between 100% and 400% of the federal poverty level, they may qualify for premium tax credits, which reduce the monthly premium costs for their chosen health plans. Additionally, there are cost-sharing reductions available for those below 250% of the federal poverty level, which further decrease out-of-pocket expenses when receiving care.

The other options are not applicable in this scenario. There is no requirement for individuals to pay a penalty if they do not qualify for Medicaid. Automatic enrollment in Medicare usually applies to individuals aged 65 and older or those with specific disabilities, which doesn't apply here. Temporary health insurance typically refers to short-term plans that do not provide comprehensive coverage and are not specifically designed to assist those in need of affordable insurance under the ACA framework. This makes the option regarding premium tax credits through the Marketplace the most accurate and relevant response.