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Understanding Enhanced Premium Tax Credits – Tax Series Part 4 of 7

Health Care Tax

Published on March 3, 2025

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The original Premium Tax Credit (PTC) is an advanceable refundable tax credit designed to help eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace. Established under the Affordable Care Act (ACA), the PTC has undergone significant enhancements to increase accessibility and affordability of health coverage. The goal has been to ensure more Americans have access to quality healthcare by reducing the cost of monthly insurance premiums. Since its inception, the program has evolved through legislative updates, expanding eligibility, and increasing subsidies, making it one of the key mechanisms for maintaining broad health coverage in the U.S.