To receive premium tax credits (APTC) for an individual health plan in California, a consumer must...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
In California, advance premium tax credits are available only to consumers who purchase a qualified health plan through Covered California, the state's exchange. Covered California computes the credit based on household income and pays it directly to the insurer, lowering the premium the consumer pays each month. Buying the same or similar coverage directly from an insurer outside the exchange forfeits eligibility for the subsidy. This exchange-channel requirement is a distinctly California rule in the PPACA section of the A&H outline, and because it depends on Covered California's operation, the question is anchored as California-specific.
Why the other options are wrong
- B) Off-exchange purchases do not qualify for APTC; the credit requires exchange purchase.
- C) Medicare Advantage is a federal program product unrelated to premium tax credits.
- D) Short-term policies are excluded from the exchange and ineligible for any APTC subsidy.
Memory hook
No exchange, no credit — APTC flows only through Covered California.