What is the main function of premium subsidies in health insurance?

The main function of premium subsidies in health insurance is to lower the monthly premium costs for eligible individuals and families. Premium subsidies are designed to make health insurance more affordable, particularly for those with low to moderate incomes. By reducing the amount that individuals and families need to pay out of pocket for their monthly premiums, these subsidies enable more people to access necessary healthcare services without facing overwhelming financial burdens.

This financial assistance is often calculated based on income and household size, ensuring that those who qualify receive appropriate support to alleviate the costs associated with purchasing health insurance. As a result, premium subsidies play a crucial role in improving access to healthcare by making insurance plans more attainable for a wider segment of the population.