Health Insurance 101: Become An Expert to Save Healthcare Dollars
Do I Really Need Healthcare Insurance?
Absolutely. Health insurance is one of the most important purchases you can make. Health insurance will help pay for (or fully pay for) preventive and yearly well-care exams, trips to the doctor for acute illnesses like the flu or a broken bone, and longer-term coverage for chronic illnesses like high blood pressure.
In addition, major medical expenses such as surgery, hospitalizations, and rehabilitation are covered, as well as prescription drugs. Even with the new insurance laws, many people in the U.S. are still burdened by costly health insurance. The Affordable Care Act (ACA), also known as ”Obamacare”, does offer financial assistance for some people based on income to help make insurance more affordable. But it may not be 'affordable' for everyone, especially those who do not qualify for credits.
What is the Marketplace?
If you bought an insurance plan through the Marketplace, you can renew or change your plan each year in the fall, but don't miss the open enrollment deadlines (typically Nov 1 through Jan 31 each year). In most states if you don’t act to renew your coverage by December 15, the Marketplace will automatically renew coverage for you. You can call representatives at the Marketplace Call Center at 1-800-318-2596 for questions and to double check deadlines, as they are always subject to change from year-to-year.
Does the Marketplace Offer Medicaid or Other Insurance?
Yes. Medicaid and the Children’s Health Insurance Program (CHIP) are both offered through The Marketplace. Medicaid and CHIP provide either free or low-cost insurance to millions of Americans, including low-income families and children, pregnant women, the elderly, and people with disabilities. In all states, CHIP provides health coverage to children in families that earn too much to qualify for Medicaid.
You can apply for and enroll in this coverage at any time. Certain factors will determine if you qualify, such as your age, disability, the size of your family, and your household income. If you can't afford Obamacare, you may be eligible for one of these programs.
What Do the Terms 'Deductible', 'Copay', 'Coinsurance', and 'Out-of-Pocket Limit' Mean?
Coinsurance is a set percent of the cost of your care; for example, if a special x-ray costs $500, you might have to pay 20 percent, or $100. And don't forget, this might be after any deductible. Out-of-pocket limit is the maximum amount you would pay in one year before your insurance starts to pay 100% of your bills.
What is Covered in the Marketplace Health Insurance Plans?
Coverage is comprehensive, but can be costly. All plans must cover the essential health benefits, including:
- Outpatient, wellness visits, chronic disease and emergency care
- Hospitalizations and surgery
- Maternity and newborn care
- Prescription drugs
- Rehabilitation and habilitative services and devices
- Laboratory services
- Mental health and substance use disorder services
- Pediatric care
Are Their Penalties If I Do Not Sign Up for Health Insurance?
The penalties will be greater than just a dollar figure. Health insurance is to your benefit, and that of society, to help prevent illness. While it can be a significant monthly cost, it is to your advantage - and your family - to get health insurance, either from the Marketplace or your employer to avoid paying certain penalties.
The penalty increases every year, and in 2016 it’s 2.5% of income OR $695 per adult and $347.50 for each child, capped at $2,085. You’ll pay whichever is higher. For 2017 and beyond, it will be $695 per person adjusted for inflation.
Bottom line, it may be better to take time out now to look for health insurance than to eventually pay a costly penalty to the US government.
What Should I Do If I Already Have Health Insurance?
You probably do not need to do anything. Many Americans have group health insurance through their employer or are covered by government-funded programs such as Medicaid, Medicare, or the Children's Health Insurance Program (CHIP).
If you have group health insurance through your employer, you can compare your monthly marketplace premium with that of your employer, but most likely your employer group plan will be a better deal. However, situations change, and the number of adults with employer-provided insurance has been steadily decreasing in recent years. Marketplace insurance can provide needed coverage when gaps occur.
How Much Insurance Can I Afford?
Even with the Marketplace, health insurance may be unaffordable for many people. It’s important to think about how much health care you need, what you can afford, and what coverage makes the best sense for you. Plans with higher benefit coverages and lower copays are going to be more expensive. If you have many chronic conditions, it might make more sense for you to have greater coverage.
If you are young with few, if any, health conditions, a less comprehensive, but less expensive plan with higher deductibles and copays might be a better option.
However, if you have limited income the ACA may provide tax credits to help make your insurance more affordable. Don't forget about Medicaid and CHIP.
How Much Does Insurance Cost in the Marketplace?
The percentages the plans will pick up, on average, towards your health costs are 60% (Bronze), 70% (Silver), 80% (Gold), and 90% (Platinum). But remember, more coverage means higher premiums. Less expensive plans may be a better deal for the young and healthy with few healthcare needs. However, the ACA may be very beneficial for young adults who need healthcare.
I’m Always Having to Sign Papers About Privacy. What is HIPAA?
You also have the right to request your medical records from your doctor or lab test results right from the lab. It is your legal right to see your health information. No one should ever deny you access to your personal health records.
How Can I Save Money on My Prescriptions?
Prescription drugs make up a costly segment of healthcare. But lowering your drug bill can improve the likelihood of taking your medicine as prescribed, and lower your overall healthcare costs.
How to do this? Use a generic drug when you can; they are less expensive, with lower copays, but do the same job. Research your medicine copays or costs on your insurance website or give them a call.
Don't be afraid to talk to your doctor, pharmacist or insurance company about drug costs and what you can afford; there are usually many options from which to choose. Ask about medication assistance programs and free samples, too. Do NOT buy drugs off of the Internet; they can be unsafe, expired or even illicit.
What is Medicare? Do I Sign Up For This On the Marketplace?
There are 4 parts to Medicare: in general, Part A covers hospital-type expenses; Part B covers outpatient care; Part C (Medicare Advantage) is from a private insurance company that covers both Part A and Part B; and Part D covers prescription drugs. You must have at a minimum Medicare Part A to be considered covered under the Affordable Care Act without having to pay a penalty.
How Do I Know if I Qualify for Medicaid?
For example, in 2016 if you make less than roughly $27,000 for a family of three, you would be eligible for Medicaid assistance. You may also qualify for credits and out-of-pocket assistance in the Marketplace. Rules and limits do vary among states, so check within your local area for specific limits.
How Does High Deductible Insurance Work?
High deductible health insurance is one option your employer may offer to lower your premium cost (the amount you spend to purchase your insurance). Here's how it works: you pay a lower annual premium, but your insurance may not fully kick in until you've met your deductible which may exceed $4000 or more per family. Usually, well care exams and preventive procedures like mammograms or a colonoscopy will still be covered.
High deductible health care plans may come with a health savings account card that allows you to save pre-tax money specifically for healthcare expenses. Be sure once you hit your deductible that all costs are covered. These plans might be good for young families with few health issues.
Overview: Questions to Ask Before You Buy Health Insurance
Healthcare insurance is important, but can be expensive. Many Americans are concerned about higher costs with the ACA Marketplace. Questions to consider before buying:
- What coverage do you really need? Can you afford a higher deductible to save money on premiums?
- Would it be beneficial to start a health savings account with a high deductible plan instead of paying high premiums?
- Have you compared different plans in the Marketplace, and if you need help, have you called?
- How much are the plan premiums and what are your out-of-pocket costs?
- Are you sure your family is not eligible for Medicaid or CHIP if you have no ability to pay for insurance?
Finished: Health Insurance 101: Become An Expert to Save Healthcare Dollars
- Nearly 1 Million More Kids Have Health Coverage After Obamacare. May 11, 2016. Drugs.com. Accessed June 10, 2016 at https://www.drugs.com/news/nearly-1-million-more-kids-have-health-coverage-after-obamacare-61224.html
- Healthcare.gov Accessed June 10, 2016 at https://www.healthcare.gov/
- Kaiser Family Foundation. For Consumers: Understanding Health Reform. Accessed June 10, 2016 at http://kff.org/understanding-health-insurance/
- Kaiser Family Foundation. Health Reform FAQs. Accessed June 10, 2016 at http://kff.org/health-reform/faq/health-reform-frequently-asked-questions/
- Obamacare Facts. Federal Poverty Level Guidelines. Accessed June 10, 2016 at http://obamacarefacts.com/federal-poverty-level/