Individual and Family
There are many ways to save on your health insurance premiums this year. Some options include finding out if you qualify for premium tax credits, evaluating your specific health and budgetary needs, and using eHealth’s Health Sherpa to easily find an affordable health plan.
When applying for health insurance you may qualify for a government subsidy to help you afford your health insurance premiums depending on what your household income is.
These subsidies are called premium tax credits, which help you afford your health insurance premiums. Depending on how much your household income is above or below the Federal Poverty Line will determine whether or not you will qualify for subsidies. Knowing where your income is in comparison to the FPL could help you save a substantial amount of money – in some cases, you may end up paying nothing for your coverage.
Those who make between 100% and 400% of the FPL may qualify for subsidies. Those who make less than 133% of the FPL may qualify for Medicaid. Even if you do not think that you qualify financially for Medicare, you should apply just in case – especially if you’re pregnant or disabled as you are more likely to qualify.
|Persons in Family/Household||100% of Federal Poverty Line||200% of FPL||300% of FPL||400% of FPL|
Additionally, other factors such as your age, household size, and where you live can effect if you are eligible for ACA subsides.
When trying to save on individual and family health insurance, plans with low-premiums might seem like the best option for those looking to save on their health insurance premiums. However, while low-premium plans may seem appealing at first, they may not save money in the long run.
Plans with lower health insurance premiums, tend to have higher deductibles; your deductible is the amount of money that you have to pay out-of-pocket toward covered care before your health insurance company starts paying toward covered benefits.
With plans with low health insurance premiums and a high deductibles, you could end up spending more out-of-pocket to reach your deductible than you would if you had a plan with a higher health insurance premium. Keep in mind that you have a family plan you will have to meet both an individual and family deductible in addition to paying your monthly health insurance premium before your coverage kicks in.
Plans with low health insurance premiums may be appealing to you if you are generally healthy and want coverage for worst-case scenario situations, but you will have to pay a higher deductible.
Plans with higher health insurance premiums may be appealing to you if you have a chronic illness, expect to schedule expensive medical procedures in the upcoming year, or are looking for a plan with more coverage.
There is no rule of thumb for how much of your income you should spend on health insurance premiums per month. Health insurance spending is a highly subjective subject and heavily depends on your budget and the amount of care you need.
Keep in mind that you will not only be paying your health insurance premiums (monthly payments) but you will also have out-of-pocket costs such as paying toward your deductible and paying copays or coinsurances.
These out-of-pocket costs will vary heavily on how much healthcare you need and what kind of plan you choose.
Not only do you need to consider your budget, but you need to consider the level of care you will need in the upcoming year in order to find a plan that works for you.
Consider the amount of healthcare you have received in the past. Do you usually only need preventative visits? Or do you have a chronic illness that requires more doctor’s visits?
Also look ahead and consider what kind of healthcare you will need in the upcoming year. Will you need to schedule a costly procedure such as surgery? Will you need to see a specialist in the upcoming year?
Once you’ve considered both your budget and the amount of care you will need in the upcoming year, you will be one step closer to saving on your health insurance premiums.
eHealth is the first and largest online health insurance brokerage in the United States. Our insurance agents are looking to help you find the best plan with the most affordable premium and the most comprehensive coverage for your needs.
You can use eHealth’s online Sherpa tool to help you find the right plan with the right health insurance premium for you and your budget. Or you can work with one of our agents one-on-one to find what you’re looking for by calling 1-877-217-0092.