The Affordable Care Act (ACA) is a federal law that was enacted in 2010 with the goal of making healthcare more accessible and affordable for Americans. One of the key provisions of the ACA is the establishment of government subsidies to help individuals and families pay for health insurance. These subsidies, also known as premium tax credits, are available to people who meet certain income and other eligibility requirements.

Under the ACA, individuals and families who have an income between 100% and 400% of the federal poverty level (FPL) may be eligible for subsidies to help them pay for health insurance. For example, in 2021 the FPL for a family of four is $26,200, so a family of four with an income between $26,200 and $104,800 per year would be eligible for subsidies. In addition, people who are not offered affordable coverage through their employer and who are not eligible for other forms of coverage, such as Medicare or Medicaid, may also be eligible for subsidies.

To receive subsidies, individuals and families must purchase health insurance through the ACA marketplace, which is a website where they can compare and shop for different health insurance plans. When they apply for coverage through the marketplace, they will need to provide information about their income, household size, and other factors to determine their eligibility for subsidies.

If an individual or family is eligible for subsidies, the amount of the subsidy will depend on their income and the cost of the health insurance plan they choose. The ACA provides two types of subsidies: premium tax credits and cost-sharing reductions. Premium tax credits are used to lower the monthly cost of health insurance premiums, while cost-sharing reductions are used to reduce out-of-pocket costs such as deductibles, copayments, and coinsurance.

To receive premium tax credits, individuals and families must choose a "silver" level plan through the ACA marketplace. Silver plans have lower premiums and higher out-of-pocket costs than other types of plans, such as "gold" or "platinum" plans, but they are still considered to be of good quality. The amount of the tax credit will be based on the difference between the cost of the silver plan and the individual or family's expected contribution to the cost of the plan, which is determined by their income and household size.

Cost-sharing reductions are available to individuals and families with incomes between 100% and 250% of the FPL who choose a silver plan through the ACA marketplace. These reductions can lower the amount of out-of-pocket costs that the individual or family has to pay when they receive healthcare services.

The Affordable Care Act (ACA) provides government subsidies for healthcare insurance to individuals and families with low or moderate incomes. These subsidies, also known as premium tax credits, can help lower the cost of health insurance premiums for eligible individuals and families. To qualify for a subsidy, an individual or family must have an income that falls between 100% and 400% of the federal poverty level and must not be eligible for employer-sponsored health insurance or other government programs, such as Medicare or Medicaid.