What does the acronym APTC stand for?

The acronym APTC stands for Advanced Premium Tax Credit. This term is significant within the context of health insurance, particularly under the Affordable Care Act (ACA). APTC is designed to help lower-income individuals and families afford their health insurance premiums when they purchase plans through the Health Insurance Marketplace. The amount of the credit is based on the applicant's estimated annual income and the size of their household, helping to ensure that health insurance coverage remains accessible and affordable for those who qualify.

Understanding APTC is important for individuals seeking health insurance, as it provides financial assistance that can significantly reduce the cost of premiums, making coverage more attainable.