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What is Health Insurance Subsidy

what is health insurance subsidy

What is health insurance subsidy? This is a fantastic question and one that effects millions of new consumers each and every year. The subsidy program was established by the government to make buying health insurance more palatable, even though there are better and more comprehensive products on the private sector of insurance coverage. The point is that by offering a suggestion of a subsidy, many people feel that the government is trying to do them, a solid and give them a better offering than what they can find on the open market. This is a sleight of hand, however, since even a full package of subsidized insurance supplementals is more expensive by far than a regular comprehensive health insurance policy that will provide better benefits.

What is Health Insurance Subsidy?

So, what is health insurance subsidy?The health insurance subsidy is the shady reduction in artificially raised insurance costs, passed onto the consumer as a bill of rights to replace the responsibilities of the government to honor the Medicare pledge made when they deducted costs for medical insurance from your paycheck all of those years. Now that you aren’t; working and paying in, the system determined instead to get more money out of you by reducing rates and offering subsidized supplemental plans to fill in the holes.

Subsidy Chart

You can see this plan of action for yourself y using the subsidy chart online and comparing supplemental subsidized plans with those that are available for direct purchase. Better benefits and lowered costs, both in premiums and deductibles, all without subsidies.

Health Insurance Subsidy Calculator

Guaranteed, using a health insurance subsidy calculator and comparing costs between private policies will make the decision for you.

Health Insurance Marketplace

So, what is health insurance subsidy? The health insurance subsidy is a portion of the insurance bill that is comped by the government to provide an illusion of value and care taking as promised loosely in the modified Medicare contract with the consumer base. By offering a perceived reduction in rates, the draw for consumers is that they feel they are getting a good deal where if they went somewhere else they wouldn’t. Subsidies simply don’t exist. Insurance is not a physical good that has inherent value. Therefore, rates are artificially raised then lowered to show a savings or to demonstrate a reduction in rate that is supposedly covered by the government. It is a shallow system, and one that the health insurance marketplace relies on to stay profitable. If the whole base of consumers decided to actually research and discover better value somewhere else, the system would collapse.

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