"The Affordable Care Act (ACA) was enacted in March 2010.
It provides for eligible consumers to receive financial assistance to purchase a plan on the Marketplace.

Financial assistance can come in the form of premium tax credits (PTCs) to lower monthly insurance payments (called premiums) or CSRs (Cost-Sharing Reductions) that lower the amount a consumer has to pay for deductibles, copayments, and coinsurance.

Consumers can use advance payments of the premium tax credit (APTC) to lower their monthly insurance payments when they enroll in a plan through the Marketplace. The consumer’s APTC is based on the estimated annual household income and the household size that the consumer reports on their Marketplace application. The consumer’s PTC is determined after the end of the year based on the actual household income and household size for the year at tax filing."