Premium Tax Credits are administered by which entity for states without a state-based marketplace?

• A. State tax revenue authority
• B. The federal government via CMS in the FFM
• C. Private insurers
• D. Employers

Answer: (B)

Premium Tax Credits reduce monthly premiums for eligible consumers and are handled through the marketplace system that determines eligibility. In states without a state-based marketplace, the federal government takes this role through the Centers for Medicare & Medicaid Services (CMS) and the Federally Facilitated Marketplace (FFM). You’d apply for coverage on HealthCare.gov, and CMS administers the credit—often as an advance premium tax credit paid to the insurer—with any reconciliation at tax time handled by the IRS. The other options aren’t correct because state tax authorities, private insurers, or employers don’t administer Premium Tax Credits.