Beginning on January 1, 2014, most of the provisions of the Patient Protection and Affordable Care Act (PPACA), also known as Obamacare will go into full effect. One of these provisions is the requirement that every American have health insurance or pay a fine. Therefore, it is very important to find health insurance that gives you the coverage you need at a price you can afford. But how do you do this? Despite the controversy about the overall cost of the Affordable Care Act, there are some new ways to find affordable health insurance on an individual level. Here are 4 ways that you can find health insurance that fits your budget and medical needs.
Obamacare has reformed the group insurance model. While originally set to be implemented in 2014, the employer mandate to provide health insurance has been postponed until 2015. Still, once it is put in place, you will be able to find health insurance through your employer that puts limits on what you pay for the plan and what your out of pocket limits will be.
The Affordable Care Act requires that employers with more than 50 full-time employees offer medical insurance to all of their full-time employees. Full-time is defined as anyone who works at least 30 hours per week. There are different calculations that go into the full-time definition, but just know that if you average 30 hours per week, you must be offered coverage.
The coverage that you are offered must have at least a 60% actuarial value, meaning that on average, for every dollar that the insurance covers, the insurance plan must pay for at least 60 cents. One of the ways this is achieved is by limiting the individual’s out of pocket maximum. In 2014, the limit is $6,350 and includes deductible, coinsurance, and copays.
Also, the employer cannot make an employee pay more than 9.5% of their salary to participate in the plan. If you make $2,000 per month, the most you can pay for your insurance is $190. Having said this, there is no cap on the cost of insurance for a dependent.
Still, with these provisions in place, you can find health insurance that is probably cheaper and better than before.
Obamacare created health insurance marketplaces – originally called exchanges – to help people find health insurance plans quickly and efficiently online. The marketplaces will make the search for a good plan easier than looking for individual insurance on your own. Everything will be in one place.
While it will be interesting to see if the actual premiums of the plan are any cheaper than pre-Obamacare, some people will get help paying their premiums by way of tax credits (see here for tax credit eligibility).
If someone can find health insurance and use a tax subsidy, a good plan at a low rate will be available.
The Affordable Care Act requires insurance companies to allow children to enroll in their parent’s insurance plan until age 26. This is very advantageous because many times the cost to add a dependent to a plan is lower than the cost of an individual plan. In fact, many times a new dependent can be added at no cost since some plans have one premium rate for all children on a plan. In that case, someone under age 26 can effectively find health insurance that is free.
When Obamacare was passed, it required Medicaid to be expanded in every state. This expansion will make it easier for adults to find health insurance through this government program. The Supreme Court took away the requirement, and as a result, many states will not be expanding this coverage.
However, if you live in a state that is expanding Medicaid, check to see if you are eligible for this low cost way to care for medical needs.
When you try to find health insurance at an affordable rate, make sure to be patient and look at all your options. Good coverage at a reasonable price is available.
On October 1, 2013, the health insurance marketplaces, also known as exchanges, created by the Patient Protection and Affordable Care Act (Obamacare) will go live for Open Enrollment. The exchanges will be a great way for individuals and small businesses to find a variety of health plans from a variety of health insurance companies at (hopefully) a competitive cost.
One of the things that helps people, especially young people, afford the premiums on the marketplaces is a tax subsidy for health insurance plans. Some people will be eligible for this assistance, but not everyone. Here is how you can have a rough idea if you are eligible for the tax credits. You must meet all of the following criteria.
Obamacare made it mandatory for employers with at least 50 employees to provide all full-time employees with the option of enrolling in their group medical plan. The plan must pay for at least 60% of allowed charges and no employee may pay more than 9.5% of their salary to purchase the plan. If an employer offers a plan that fails those two standards, there is a fine they must pay.
The definition of a full-time employee is important in figuring out if you are eligible for a subsidy for health insurance through the exchange. A full-time employee is defined as someone who average 30 hours per week or more. There are some calculations that your employer will do to determine hours worked, but in general, 30 hours is a full-time employee.
So, all this to say, that if you are offered coverage at work that meets the two standards above, then you are NOT eligible for a tax subsidy. If you are not offered coverage, then you still may be eligible for the subsidy.
Subsidies are only available to households that earn less than 4 times the federal poverty level. In addition, the amount of the subsidy depends on the household income. Folks that make less can get a larger subsidy for health insurance in the marketplaces.
If someone is eligible for Medicaid and Medicare, two government programs that help pay the cost of medical expenses, then that person is not eligible for a subsidy. A tricky aspect of this rule is that while Obamacare expanded Medicaid coverage, not every state expanded Medicare coverage. So your eligibility for Medicaid depends on where you live. You could be eligible in one place, but not eligible in another place.
Medicaid is administered by the states, so check with your local Medicaid office for more information.
For the most part the subsidy for health insurance bought on the exchanges is in the form of tax credits in the following year. For example, you pay your premium in 2014 and the tax credit is applied on your 2015 tax form. However, if this arrangement causes a hardship, there are ways to reduce the actual premium.
The subsidy for health insurance on the exchanges is designed to be a quick and easy process. Someone can apply right on the marketplace’s website and find out if they are eligible. In fact, here is a nifty calculator from Kaiser to help determine if you fit the eligibility requirements.
The marketplaces and the subsidy for health insurance purchased through the marketplaces are designed to make affordable health insurance more available. However, that does not mean that the exchanges are your best option. Take a look around to see how you can find the best coverage at a price you can handle.
Is Affordable Medical Insurance Available to Young People?
There are not many problems with being young. One of them, however, is that it can be difficult to find affordable medical insurance. A good health insurance plan is not cheap and will still usually leave you with a large medical bill if you use the plan. But that doesn’t mean that you have to pass up the opportunity to buy coverage for yourself and/or your family. There are ways to be able to afford a good plan. Here are some of best.
There are a couple of big reasons to have medical insurance. For one, in the event that you need medical services, you will owe less out of pocket if you have an insurance plan. With an insurance company, you will get the benefit of having bills discounted, which you will not receive if you are not covered. You will be responsible for the entire bill and having to negotiate with the doctor or hospital on your own.
Second, the Patient Protection and Affordable Care Act (Obamacare) requires every American to be covered by a health insurance plan, or else face a tax. The requirements for this mandate are not too strict, so finding affordable medical insurance and avoiding the penalty is possible.
The Affordable Care Act created health insurance exchanges, online marketplaces where individuals can compare plan designs and premiums for plans from various insurance companies. The idea of the marketplaces is that with a level plan design playing field, insurance companies will get competitive with each other to drive down the cost of insurance. While the jury is still out on this, the law created another way to find affordable medical coverage on the exchanges.
That would be by giving tax credits to help offset the cost of the insurance premiums. If you make less than 400% of the federal poverty level and are not eligible for Medicaid, you will receive assistance to pay for the coverage.
The marketplaces are administered by the states. You can find your exchange here.
Group coverage has always been a decent way to receive affordable medical insurance. Employers typically subsidize the premiums and offer a reasonable plan. Obamacare has made it even easier to afford the cost of a group plan. The law states that an employer can only charge an employee up to 9.5% of the employee’s salary. So for someone making $20,000 per year, 9.5% equals $158 per month. That sounds like a lot, but it is a small percentage of the actual premium.
The Affordable Care Act also states that an employer must offer a plan that pays for at least 60% of the cost of the claims (with the other 40% paid by the member). A 60% plan will have a large out of pocket exposure, but will keep you from going broke in the event of a major illness or sickness.
Another way to find affordable medical insurance is catastrophic health insurance. Catastrophic health insurance has large out of pocket limits, but the premiums are small. So while the coverage is affordable on a month-to-month basis, it will not be affordable if you have a significant claim event. But at least you’ll have medical coverage. Most catastrophic plans will meet the requirements of coverage needed to avoid the individual mandate penalty.
Obamacare allows children to remain on their parent’s plan until age 26. Not only is this a way to find affordable medical insurance, it can be a way to get free health insurance. If a child is already on the plan, there is usually no additional cost to add another child. This can be a great way for young people to get covered.
Affordable medical insurance is available to young people. However, affordable can be a relative term. Healthcare is expensive, and so is the insurance to cover it. But with some work, you can find a plan that fits your needs and your budget.
With the requirement of the Patient Protection and Affordable Care Act (PPACA), also known as Obamacare, that every American purchase health insurance or face a tax, there are many young adults that will be looking to access health insurance for the first time in their lives. There are so many options out there, it can be difficult to choose which is the best way to cover them and their families. With that in mind, here are some of the best ways to access health insurance that is comprehensive and affordable.
The Affordable Care Act expanded the eligibility requirement of group plans. Under Obamacare employers must offer medical coverage to all of their full-time employees, defined as employees working at least 30 hours per week. If the employer refuses, they will pay a fine.
There are some formulas to determine the hours an employee works, but as long as a worker meets the 30 hours per week mark they will be offered the same coverage options as everyone else.
In addition to being offered coverage, the law requires that the insurance be affordable. An employer cannot charge more than 9.5% of an employee’s monthly salary to access health insurance at the workplace. If more than 9.5% is kept out of a paycheck, the employer will face a fine.
Another big advantage of Obamacare is the requirement that children be allowed to enroll in a parent’s plan until age 26. Before the legislation was passed it was up to the insurance plan to decide how long children could be covered. Now, a dependent can be enrolled long enough to give him or her time to establish their own means for paying for a medical insurance plan.
A parent’s plan can be an inexpensive way to access health insurance since many employers subsidize the cost of children on a plan. If another child is already enrolled, then there usually is no extra cost to add another.
Obamacare established health insurance marketplaces, online sites designed to help individuals and small businesses access health insurance with ease. The marketplaces, also called exchanges, will offer 4 levels of plan design from various health insurance companies. The exchanges are the responsibility of each state, and some states have built their own exchange. Some others are sending their residents to a federal exchange.
If someone does not have coverage offered at work, earns less than 400% of the federal poverty level, and purchases insurance on the exchange, they will be eligible for tax credits to help offset the cost of the premium.
If group insurance and the health insurance marketplaces are not a viable option, there is still the possibility of finding individual insurance on your own. There will be some legwork involved, as it is not necessarily easy to sort through plan designs from different companies. However, you will have more options as to which level of insurance plan you would like than you will on the exchange. The coverage bar required to satisfy the individual mandate is not very high, and you can find plans that meet the requirements at a low price, albeit without much coverage.
If you do not want to find individual insurance on your own, you can hire a broker to access health insurance for you.
Before 2014, it was hard for adults in many states to qualify for Medicaid. However, Obamacare expanded Medicaid to make it much easier to be eligible for assistance through this program. Like the exchanges, Medicaid is administered through the states, so check with your state’s Medicaid office for more information.
Being able to access health insurance is much easier post-2013 than it was before due to the fact that insurance companies cannot deny coverage to people due to pre-existing conditions. This has made it less complicated to find a quality plan at a reasonable price.
Finding low health insurance rates can seem like a futile exercise. There are so many things to consider that it can get overwhelming very quickly. However, there are several ways to keep from spending too much for quality health coverage. Unfortunately, you can’t get any younger, but here are 5 other ways to get low health insurance rates.
Insurance is handing the risk of a loss over to someone else in exchange for paying a premium. The more risk you take on for yourself, the lower the premium that you will pay. In the health insurance world, you do this by choosing a plan that has high out of pocket limits. Increasing things like deductibles and copays will mean that you will pay more if you need medical services, but the monthly health insurance rates you pay will be lower.
If your employer offers a plan and you are eligible, it can make sense to join their plan. The Patient Protection and Affordable Care Act (PPACA), also known as Obamacare, sets limits on the amount that an employer can charge its employees for a health insurance plan. It also makes sure a group plan has essential benefits. So while not every group plan will be the perfect plan, you can find a plan with low health insurance rates.
The Affordable Care Act created health insurance marketplaces where individuals and small businesses can go to easily compare health insurance plans and premiums. If your employer does not offer you a benefit plan that meets minimum standards, you are eligible for a subsidy to help offset the cost of a medical insurance plan that you buy on the marketplace. These subsidies are tax credits and can really help to lower the cost of the health insurance rates that you pay for your insurance.
PPACA also made it mandatory that children be allowed to stay on their parents plan until they reach age 26. Many times, someone can add their child to the benefit plan for just a small amount. If another child is already on the benefit plan, then the health insurance rates will usually not even increase since the parent is either on an Employee + Children or Employee + Family plan to begin with. So in essence, someone can get free health insurance by enrolling in their parent’s group plan.
If you do not have a group plan to join and you cannot find a satisfactory plan on the exchanges, then it might be a good idea to hire a health insurance broker. Comparing a multitude of plans from a multitude of insurance companies can be too much to handle, but for an insurance broker, it is just another day. Brokers have insider knowledge of the insurance industry and can quickly and efficiently find options for comprehensive coverage with good health insurance rates much better than the rest of us.
Health insurance rates are not going to be cheap, but these five methods can help you find low cost health insurance.