Insurance Questions: What is the Advance Premium Tax Credit (APTC)?

​The Advance Premium Tax Credit is a Federal Tax Credit for individuals that reduces the amount that they pay monthly for their health insurance premiums when they buy their health insurance on the marketplace.
 
The Advanced Premium Tax Credit is calculated by the federal government and sent directly to the health insurance carrier. The individual gets a monthly discount on the premium they pay each month.
 
Anyone eligible for this tax credit is determined by income. Those who make more will receive a smaller credit and smaller discount, while those with a lower income will receive a larger discount and larger credit. Because this tax credit is a direct payment the individual is not responsible for the entire amount, only the discounted amount.