ACA subsidies help lower premiums and out-of-pocket costs for Marketplace buyers

The Affordable Care Act (ACA) offers financial assistance to people purchasing health insurance on their own through Marketplaces, also known as exchanges, according to KFF.

There are two main types of assistance under the ACA. The premium tax credit lowers the monthly payments that enrollees must pay for their insurance coverage.

Additionally, cost-sharing reductions (CSRs) help reduce deductibles and other out-of-pocket costs for eligible individuals.

These sliding-scale subsidies aim to make health insurance more affordable, especially for people with lower or moderate incomes, KFF explained.

KFF is an independent source that provides policy research, polling, and news on health issues, helping to inform national debates on health care reform.