What is meant by “subsidies” in the context of health insurance?

In the context of health insurance, "subsidies" refer to financial assistance provided to help lower-income individuals afford premiums. This financial support aims to make health insurance more accessible by reducing the amount individuals and families need to pay out-of-pocket for their insurance premiums. Subsidies can take the form of tax credits or direct payments, which lowers the overall cost of obtaining coverage on health insurance marketplaces.

This support is especially crucial as it helps bridge the gap for those who may struggle to pay for healthcare costs due to limited income. By making insurance premiums more affordable, subsidies facilitate broader access to necessary healthcare services, ensuring that more people can obtain and maintain health insurance coverage without facing financial hardship. The other options presented do not accurately capture the concept of subsidies as understood within the health insurance framework.