Which of the following best describes a subsidy in the context of health insurance?

In the context of health insurance, a subsidy is defined as financial assistance provided to individuals or families to help lower the cost of their health insurance premiums. This economic support enables more people to afford necessary coverage and is often aimed at those with lower incomes. Subsidies can take various forms, such as tax credits or direct payments, facilitating access to healthcare services that may otherwise be out of reach for many.

This concept is particularly relevant within health care reform efforts, where subsidies play a crucial role in making insurance more affordable and accessible, thus promoting public health objectives. By lowering the financial burden on consumers, subsidies encourage enrollment in health plans, contributing to a healthier population and reducing overall healthcare costs in the long run.