What is a health insurance subsidy?

A health insurance subsidy is a type of financial assistance that helps lower the cost of health insurance premiums. It is a payment from the government that is designed to make health insurance more affordable for those with low incomes. In North Carolina, a subsidy is available to anyone making less than 400% of the federal poverty level. This subsidy is calculated by taking into consideration the person’s age, family size, and income, as well as the cost of health insurance in their area. The amount of the subsidy that a person receives will depend on these factors. The subsidy can be used to reduce the amount of money an individual has to pay for health insurance premiums. For example, if a person’s premium was $200 per month, the subsidy could reduce this amount to $120 per month. This can help individuals and families who may not be able to afford health insurance otherwise. It is important to note that the health insurance subsidy is only available to those individuals and families who are eligible. Eligibility requirements include being a legal U.S. citizen or resident of North Carolina, being under the age of 65, and having an income that is below the 400% federal poverty level. It is also important to keep in mind that the subsidy is only available for Marketplace plans, and not employer-sponsored plans.

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