What is a health insurance subsidy?

A health insurance subsidy is a type of financial assistance from the government that helps people pay for health insurance. The subsidies, also known as premium tax credits, are available to people who meet certain income criteria and are buying health insurance through the marketplace. In North Dakota, the health insurance subsidy is offered on a sliding scale based on a person’s household income. The lower the household income, the larger the subsidy. To be eligible, people must meet certain requirements, such as having a household income between 100 and 400 percent of the federal poverty level. The health insurance subsidy helps make health insurance more affordable by reducing the amount of money a person pays for premiums and out-of-pocket expenses. It also helps to cover a portion of the cost of deductibles, coinsurance, copays, and other medical expenses. It can also be used to cover some of the costs of dental and vision benefits, long-term services and supports, and mental health care. The health insurance subsidy can be used to buy a health insurance plan through the marketplace or through a private insurance company. People who are eligible for the subsidy but choose not to use it will still be able to get a health insurance plan, but they will not qualify for any financial assistance from the government. It is important to note that the health insurance subsidy is only available to people who meet certain income requirements and purchase health insurance through the marketplace.

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