Subsidy

A definition of subsidy.

What you need to know

Health insurance subsidies help you pay for health coverage. Three types are available: premium tax credits which lower your premiums; cost sharing reductions that lower your copays, deductibles, coinsurance and out-of-pocket limits; and Medicaid. If your income is at or below 400% of the Federal Poverty Level, you are eligible for some sort of subsidy.

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