What does subsidy mean in health insurance?

The government pays the difference between what an individual’s premium costs and the cost of providing the coverage. This is known as “subsidizing” the cost of health insurance If your employer pays a portion of your health insurance premium, it is a subsidy. If the individual pays the entire premium out of pocket, it is a “self-pay” or “deductible” cost.

What does health insurance subsidy mean?

The term “ subsidy is often used to describe a government-provided discount on your monthly premium. You can think of it as the difference between what your insurance company says your plan costs each month and what you actually pay. In some cases, the government will pay the difference. In most cases, there are qualifying requirements you have to meet to be eligible for a subsidy.

What does healthcare subsidy mean?

In the context of healthcare, a subsidy is a payment made by one entity (the government or an insurance company) to reduce the cost of something to another entity. In this case, the health insurance company provides subsidized coverage to low-income individuals and families.

What does medical insurance subsidy mean?

"Subsidies" cover the cost of part or all of your insurance premium, either for you or your employer. There are two main types of medical insurance subsidies: income-based and asset-based. Income-based medical insurance subsidies are available to people who meet certain eligibility requirements. These eligibility requirements vary by state. Generally, you'll need to meet a certain income level or personal or dependent income level in order to be eligible for an income-based subsidy.

What does insurance subsidy mean?

Typically, if you meet income eligibility requirements, you can get health insurance through an employer or the government. If you don't meet the eligibility requirements for private insurance, you may be able to get subsidized health insurance through the government.