How to Find Affordable Health Insurance During This Year’s Open Recruitment
Health insurance: you screwed up with it, and you really screwed up without it. This year we will have extra pleasure as insurance premiums will rise by record amounts. Do you want insurance that you can afford? Here’s what you need to know.
First, don’t panic
Headlines may look terrible, but that doesn’t mean your situation is bound to get worse. The reported 25 percent increase in premiums is the average for certain plans in certain states. The premium you pay in person may not increase as much, and if it increases, you can still opt for a cheaper plan. According to a report by the Department of Health and Human Services , 77 percent of people who currently have a plan through the National Health Insurance Marketplace, in other words, through exchanges on healthcare.gov, will be able to find a plan in 2017. that’s less than $ 100 a month.
Here’s more good news: if you’re eligible for a preliminary tax credit (a form of subsidy that makes your premiums cheaper), you may not notice a significant increase at all, as the loan will absorb the difference. If you were not eligible for a loan last year, an increase in insurance premiums may mean that you are eligible for it now.
If this sounds complicated, use this quick tool at healthcare.gov to see if you qualify for premium reductions, other cost-sharing, or Medicaid. The answer will depend on which state you live in, how many people are in your household, and your expected 2017 income. For example, people should be able to get lower premiums if their income is below $ 46,680 and a family of four is eligible for benefits. if their combined income is less than $ 95,400.
Always go shopping
You should not automatically reuse the plan you had last year. Always check your options as there might be something better out there. If your insurance is provided through your employer, they will advise you of your options; otherwise take a look at the Marketplace.
An estimated 2.5 million people forgot to shop around the last year by purchasing a full-price plan themselves when they were eligible for the Marketplace subsidy. Even if you think you’ve found a great deal, do yourself a favor and double check if it’s really your best bet.
If you have coverage through your job or through another source such as Medicare or Medicaid, you will not be eligible for the subsidies that make Marketplace coverage so cheap for some people. But if coverage for your work is very expensive, you may find a better deal on the Marketplace, even if you have to pay the full price.
The open recruitment for plans on exchanges begins on November 1 and continues until January 31 of the following year. Right now, the website is offering previews so you can view plans and shop for comparison. Remember to sign up by December 15th if you want coverage to start on January 1st, but if you change your mind or find a better plan, you can still upgrade by the end of January.
Avoid common pitfalls
Buying insurance is always difficult. We’ve already told you about the trickiest pitfalls to avoid , and this tip still applies. Briefly speaking:
- Don’t overlook high-deductible plans ; they are often cheaper in the long run, and you can reduce their wallet hacking potential by creating a health savings account. Unlike the FSA, the money in the HSA account remains yours forever.
- Check your plan’s network , especially if you are going to see a specialist. Some plans have outdated or inaccurate provider lists, so actually call to make sure you can find multiple existing and accepting new patients.
- Don’t decide you’re better off without insurance; you are not . The penalty for going around without insurance is likely to be more expensive than the cheapest plan you can get. And every non- grandfather plan includes free preventive care that doesn’t affect your deductible.
Buying insurance is never fun, but getting to know yourself and researching your options isn’t necessarily a hopeless pit of despair. Somewhere out there, there is the right plan for you.
Illustration by Sam Woolley .