What financial assistance may be available on exchanges?

• A. Subsidies not based on income
• B. Premium rebates only for large employers
• C. Tax credits for corporations
• D. Subsidies based on income

Answer: (D)

Financial help on exchanges is tied to how much you earn. The main form is a premium tax credit that lowers your monthly premium, and it’s available to people whose household income falls within a certain range relative to the federal poverty level. The amount you receive scales with income—the lower your income (within the eligible band), the larger the credit; as income increases, the credit decreases and eventually phases out. There are also cost-sharing reductions for some low-income enrollees who choose a silver plan, further reducing out-of-pocket costs. Subscriptions or subsidies not based on income, or subsidies aimed at corporations or large employers, don’t reflect how exchange-associated financial help is designed.