The Affordable Care Act aims to make health insurance easier and more affordable for all, but getting coverage is still confusing. Here’s a brief guide to what you need to know about buying affordable health insurance:
When You Can Sign Up
The open enrollment period, during which you can sign-up for or change health insurance plans, is between November 1st and January 31st. If you’re getting health insurance through your employer, this is the time you can make changes to their health insurance plan.
Do You Have To Get Health Insurance?
Any American who doesn’t have health insurance needs to pay a tax penalty.
You can get health insurance through your job, your parents’ plan, COBRA, Medicaid or the VA, or a policy you purchase on your own.
Is It Just Cheaper To Pay The Penalty?
In recent years, the penalty for not having health insurance has increased. Though it may be tempting to save money and simply pay the penalty, the risks are extreme. You may be young and healthy right now, but an accident or unexpected illnesses could leave you with six-figure medical debt and derail your entire financial future. Going without health insurance is a risky bet, given the costs of a single health incident which can quickly climb into five-figure territory.
How To Buy A Policy On You Own
You have the option of buying a policy through the federal health insurance marketplace or independent local/ online broker. The fact that you can compare health insurance plans and buy them online is a very good thing.
The Cheapest Health Insurance You Can Get
Adults under 30 and those with hardship exemptions may purchase a lower-cost catastrophic plan which requires you to pay ALL of your healthcare expenses up to a certain amount
Can You Purchase Different Coverage On Your Own?
You can buy health insurance easily through the federal Marketplace, but you should keep in mind, however, that you may not qualify for certain discounts and tax credits on a Marketplace plan. Open Enrollment is the best time to explore whether buying health insurance on your own could be cheaper than the plans you are offered at work.
How You Can Compare Different Health Insurance Plans
It isn’t easy, but you need to look at three things:
- What you’ll pay in monthly premiums
- What you’ll pay out-of-pocket for routine healthcare
- How much you could have to pay out-of-pocket if you get sick or injured
