Paying for your own health insurance doesn't have to break the bank! Below, we have five considerations to take into account when choosing your health coverage plan.
1. Subsidies
The closest thing to free money when it comes to health insurance, courtesy of the federal government. You are eligible for subsidies if you fall between the 100% and 400% of the poverty line. Below are the two types of subsidies you may be eligible for.
Depending on your own circumstances, you may qualify for an advanced premium tax credit, which you may receive with your annual tax return, or as monthly installments to be put towards your premiums.
Another you may be eligible for is: cost-sharing reductions, which lower the out-of-pocket costs you'll be paying throughout the year.
2. High-Deductible Plans
These are more of a give-and-take, as you will pay less each month in terms of premiums, but if you have to use any medical services, you will pay out of pocket longer because of the high deductible that accompanies it.
This subsidy is most feasible for someone who wants to lower their monthly payment, and doesn't frequent the doctor often.
3. Health Savings Account
For those with a high-deductible health insurance plan, you may be eligible for a health savings account (HSA). This allows you to put money aside pre-tax, and use it for your out-of-pocket medical expenses, while lowering your tax bill at the same time!
Similar to a 401k, except you'll be using the money for qualified healthcare purchases.
4. Customizing Your Plan to Your Coverage Needs
Since health insurance plans are split into "metal tiers," you can use comparison shopping to select the plan that best suits your medical and financial needs. Basing your plan around your legitimate healthcare needs, without the unnecessary bells and whistles should always be taken into consideration.
Another way to comparison shop for plans, is to check your insurer's drug formulary. This lists what medicines are covered. Like insurance plans, these are divided into metal tiers as well, dividing up policies by things like specialty medication, to brand name drugs to the generics.
Since many work very similarly from a health standpoint, swapping a generic medicine for a brand name drug is a good way to save some serious money.