Government Subsidies for Health Insurance


Health insurance can be an expensive business. There are generally many fees associated with your health insurance, including premiums, deductibles, and other out-of-pocket expenses. Your insurance company may be paying for your healthcare, but you may still be responsible for part of the cost. The recently-enacted Affordable Care Act, or ACA (also known as Obamacare), was intended to help with that problem. In part, it does so by subsidizing health insurance for some low and middle-income Americans.

Government Subsidies

A subsidy is a kind of financial aid or support. Under Obamacare, you may qualify for a government subsidy for health insurance. This means you would pay less money for your healthcare plan.

How do government subsidies work? If you qualify, your health care plan usually will be subsidized in one of two ways:

  • Via tax credits. If you receive tax credits, your monthly tax bill will be decreased. The government will take the amount of the subsidy out of your tax bill and put it toward your insurance premiums. Usually you will not have to do this yourself; your premiums will automatically be lowered.
  • Via lower out-of-pocket expenses. Your subsidy may be applied directly to out-of-pocket expenses like premiums, deductibles, and co-pays. Most often, you can be eligible for this subsidy only if you purchase one specific choice of the government’s four levels of healthcare—the Silver Plan.

Do I qualify for a government subsidy? HealthMarkets can help you find out. Government subsidies depend on a variety of factors, including your income and family size. If you are lower or middle-income, you may qualify. You can read more about government subsidies on our blog. If you think you’re eligible, give us a call at (800) 827-9990 to find out. One of our licensed insurance representatives can help you find a health plan that works for you.

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