What is the primary purpose of the premium tax credit in health insurance?

The primary purpose of the premium tax credit in health insurance is to lower insurance premiums for eligible individuals. This financial assistance aims to make health insurance more affordable by reducing the amount that individuals or families need to pay out of pocket for their monthly premiums. Specifically, the premium tax credit is designed to assist those with low to moderate incomes who might struggle to afford coverage, thereby increasing access to necessary health insurance. By lowering these costs, the tax credit helps to promote the goal of broader healthcare coverage and reduces the financial burden on consumers.

Other choices, while they might touch on aspects related to healthcare financing, do not accurately represent the core function of premium tax credits. Upgrading plans, increasing government funding for insurance, or eliminating out-of-pocket expenses are not the main goals or benefits of the premium tax credit itself.