What is a key factor in enabling moderate-income individuals to afford health insurance?

A key factor that enables moderate-income individuals to afford health insurance under the Affordable Care Act is the availability of tax credits through health exchanges. These tax credits are designed to reduce the cost of premiums for eligible individuals and families whose income falls within specific ranges, making insurance more affordable. They are applied directly to the monthly premiums, resulting in a lower out-of-pocket cost for enrollees.

This system helps to bridge the affordability gap that many moderate-income individuals face when trying to purchase health coverage. By lowering the actual amount paid for premiums, these tax credits encourage more people to enroll in health insurance plans, thereby increasing access to necessary health care services. In contrast, while increased employer contributions and government funding can play a role in overall health insurance affordability, they do not specifically target the income-based affordability challenges faced by moderate-income individuals in the same systematic way that the tax credit structure does. Additionally, lower premiums based on income are a result of these tax credits rather than a standalone solution.