What does a "premium tax credit" help an individual with?

The concept of a "premium tax credit" is designed specifically to assist individuals and families in acquiring health insurance through health insurance marketplaces. When eligible individuals purchase a health plan from these marketplaces, the premium tax credit reduces the amount they have to pay for their monthly insurance premiums. This financial assistance is especially impactful for those who may have lower incomes, making health insurance more affordable and accessible, thus improving their ability to obtain necessary health coverage.

The other options, while related to healthcare in various ways, do not accurately describe the primary function of a premium tax credit. For example, long-term care insurance, healthcare service costs, and preventative care funds serve different roles within the healthcare system. The focus of a premium tax credit is specifically on making health insurance premiums more manageable, ensuring individuals can secure necessary coverage without facing financial hardship.