San Francisco Mayor Ed Lee announced on Friday that the city will be offering subsidies under a new program to thousands of city residents who are trying hard to purchase a suitable health insurance.

As per the estimates given by the city officials, the new program which will be enrolled next year will immediately benefit nearly 3,000 low-to-moderate income residents.

Residents who will be eligible for this program will be those who make $58,000 a year or less and work for a company that takes part in the City Option program.

The San Francisco's new program requires a company that employs at least 20 people to pay the city a fee instead of providing health insurance, and in return the city will provide its workers reimbursements for medical expenses.

It has been said that nearly 900 companies will be participating in the new program to help the city residents. This new initiative by the city officials expands the City Option program by providing subsidies to workers to purchase insurance through Covered California, the state's health insurance exchange.

Under the new program, workers will be free to choose the reimbursements, but the major goal is that they switch to subsidies.

Lee said, "No one in San Francisco will be left out of health reform and access to quality health care. These will help more low-income San Franciscans afford Obamacare health insurance plans, while leaving safety net in place for those who need it".

The amount of money in subsidies the workers will receive depends on several factors, including their age and how much money they earn. The program will be administered by the San Francisco Department of Public Health.