What is a health insurance subsidy?

A health insurance subsidy is a type of financial assistance provided to individuals or families in order to make health insurance more affordable. This assistance is available for those who purchase individual health insurance coverage through the Health Insurance Marketplace, or for those enrolled in a job-based health plan. In Washington state, people who meet certain income requirements may be eligible for a subsidy to help cover the cost of health insurance premiums. The amount of the subsidy will depend on the household’s income and the policy they choose. Subsidies are based on a percentage of premiums, so the more expensive the plan, the larger the subsidy. Subsidies can help make health coverage more affordable. They are available to people who earn up to 400% of the federal poverty level. This means that a family of four with an income at or below $103,000 a year may qualify for a subsidy. It is important for those who are eligible for subsidies to take advantage of them. Subsidies can make health insurance coverage more accessible and affordable, and help keep individuals and families from having to go without health care.

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