So you have been putting of your health insurance, or have recently lost it. A least expensive way to purchase insurance is through the Affordable Care Act.
There are tax penalties for not being insured. These taxes are twice as high for 2015 as they were last year. The tax is generally 2% of your annual household income or $325 for adults and $162.50 per child, whichever is higher.
If you are one of the lucky ones and never gets sick, it still pays to look into the different Health Insurance Providers.
While paying a tax penalty seems a cheaper alternative to the cost of the health insurance, if you were to get sick, or need surgery – it could cost you an absolute fortune. The peace of mine shouldn’t have a cost attached!
Here is a guide for shopping for your new health insurance provider.
Where to begin – Avoid having to pay penalties. Purchase your insurance. You can go to the website – www.healthcare.gov and have a look at the policies. This way you can make a decision on what work for you. You can also purchase your insurance through an insurance broker.
What you need – Your insurance cannot reject you due to preexisting health conditions. You will have to provide details on your household. This is the generally the number of people in the home and your income. You will also need to estimate your household income for 2015.
There are more expensive plans available – You may want to consider the bronze plans at www.healthcare.gov if you are wanting to spend little on premiums.
An example is – 45 year old couple, who live in Philadelphia and earn $60,000 per annum. They have the choice of 40 health plans. The cheapest health insurance providers is United Healthcare Bronze Compass HAS 4900. Their monthly premium is around $369.
Special enrollment – do you qualify? Did you purchase your insurance before the deadline of 15 February 2015? Special circumstances means you can apply any time of the year. This only applies if
- You have lost your insurance due to loss of employment, divorce or you have moved outside your health insurance provider’s coverage area.
- You have recently got married, had an addition to the family (new baby or adoption or foster care) or someone in the family has passed away.
- Gained citizenship, changed your employment or have been incarcerated (prison or detention).
At the end of the day, sure it may be cheaper to just pay the penalties than get insurance but the difference is – your insurance can be piece of mind and penalties are buying…well…nothing.
Even if you are well and are hardly ever sick, you can be taking a risk having no insurance. An example of this is – if you had to have an appendectomy, the average cost is around $33,000 without insurance. Just because you have insurance – it may still cost you money. A report was made by a 20 year old. They needed a procedure which required surgery and a hospital stay. The insurance helped as it paid for almost all of the debt, but there was still a substantial amount that they had to pay out of pocket. Many people think it is good to have both insurance and savings. That way if there are any out of pocket expenses – you will have the funds to pay the debt.
There are many places that you can do research on health insurance providers. If you do your research you should be able to find the insurance that is both affordable for your household and cover everything that is relevant to you and your family.