In 2025, what is the maximum income limit for eligibility of premium tax credits?

The correct answer is the option that indicates that the maximum income limit for eligibility for premium tax credits is 400% of the federal poverty level. This is important because the Affordable Care Act (ACA) established premium tax credits to make health insurance more affordable for individuals and families with moderate incomes.

Those with household incomes between 100% and 400% of the federal poverty level may qualify for these credits, which help to reduce the cost of monthly premiums for health insurance plans purchased through the marketplace. The 400% threshold allows a significant number of people access to assistance, ensuring that health insurance remains affordable as income increases.

Understanding this limit is crucial for agents and brokers, as it directly impacts their ability to assist potential enrollees in determining their eligibility for financial aid when selecting health insurance coverage. The incorrect options reflect either a lower threshold, which does not align with the ACA guidelines for premium tax credits, or a notion of no income limit, which would not make financial assistance feasible or sustainable under the current regulations.