What is a health insurance subsidy?

A health insurance subsidy is a type of financial assistance offered to help people pay for their healthcare costs. In California, subsidies are available to those who qualify based on their income, age and family size. Subsidies can help cover the costs of premiums, coinsurance, copayments, and deductibles. In California, subsidies are provided through Covered California, the state health insurance marketplace. The subsidies are available to those with incomes up to 400% of the federal poverty level. For example, a family of four in California with an income of up to $103,000 may be eligible for a subsidy. Subsidies are calculated based on an individual’s income and the cost of health insurance for their household. The amount of the subsidy may be adjusted if a person’s income or household size changes. The subsidies are an important way to make health insurance more affordable for those who may not be able to pay the full cost of insurance premiums. It is important to keep in mind that the subsidies are not available to everyone and the amount of the subsidy will vary depending on the individual’s circumstances.

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