What is Subsidized Health Insurance?

What is Subsidized Health Insurance?

Subsidized health insurance is an insurance plan with reduced premiums. The premiums are reduced because of the involvement of an outside entity that is paying, or subsidizing, the premium payment. There are many sources for subsidized health insurance.

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High-Risk Pool

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Most states have a high-risk pool that offers state-subsidized health insurance to individuals who have been denied personal insurance coverage because they are uninsurable.

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Employer Group

Employers that offer group insurance to employees often subsidize the premiums in order to take advantage of the tax benefits by doing so.

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Low Income Individuals

There are many individual state programs that offer state-subsidized health insurance insurance benefits to low income families and children.

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Unions or Groups

Union or other group members often enjoy subsidized health insurance. The dues from the group help to subsidize these insurance benefits.

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The federal government offers a federally-subsidized health insurance plan called Medicare.

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