Final answer:
The sliding scale income-based subsidy under the ACA provides financial assistance for health insurance premiums based on an individual's income level. Funded by various taxes, this structure supports the ACA's goal of expanded healthcare coverage and affordability.
Step-by-step explanation:
The sliding scale income-based subsidy under the Affordable Care Act (ACA) provides subsidies based on income for health insurance premiums to help individuals and families afford health insurance. The ACA, also known as Obamacare, was designed to expand healthcare coverage and includes a mandate that requires every individual to have insurance, while offering subsidies to those who qualify based on their income levels. This approach aims to make insurance more affordable and reduce the number of uninsured by spreading out the costs of insurance across a wider base of individuals, including both high-risk and low-risk individuals.
To fund these provisions, the ACA increased the Medicare tax on high-income taxpayers, imposed annual fees on health insurance providers, and added taxes on manufacturers and importers of certain medical devices. Despite legal challenges and political opposition, the U.S. Supreme Court upheld the ACA, recognizing the individual mandate as a constitutional tax.