Certified Application Counselor Practice Test

Which of the following statements is true regarding Premium Tax Credits?

1. They can be accessed only during tax season

2. They are automatically granted to all consumers

3. They must be applied for when enrolling in a health plan

4. They are available to anyone with health insurance

The correct answer is: They must be applied for when enrolling in a health plan

The correct statement about Premium Tax Credits is that they must be applied for when enrolling in a health plan. This means that individuals must take specific steps during the enrollment process to qualify for these credits, which are designed to help lower the cost of monthly premiums for health insurance purchased through the Health Insurance Marketplace. Premium Tax Credits are not automatically granted to all consumers, which underscores the importance of the enrollment process. Additionally, they are not limited to tax season; rather, they are evaluated based on the individual's income and household size at the time of health plan enrollment. Lastly, Premium Tax Credits are not universally available to anyone with health insurance; they are specifically intended for those who meet certain income thresholds and purchase plans via the Marketplace. Therefore, the necessity of actively applying for these credits is fundamental to making them accessible to eligible consumers.