What Not To Do To Reduce Your Health Care and Coverage Costs
Kenneth Wright
Self-employed & small business get best-in-class health coverage and not pay an arm and a leg. "How?" That's why they call me The Health Insurance Savant
For most, January is when they will be charged their first 2020 Health Insurance Plan premium. The good news is for many rate increases were minor with most being less than 3%. Some people even received rate reductions. Individual and family out-of-pocket maximums also increased in the 3% range to $8150 for individual and $16,300 for family. The is this is the same as the deductible on the least expensive marketplace plans. For some, before any costs other than preventive are covered, the insured must pay that amount along with their monthly premium. For an individual making $40,000 in annual income, that could amount to 30% of gross income.
This reflects the experience of someone purchasing in the ACA/Obamacare or individual marketplace. Having to pay such a large amount for healthcare and coverage can entice individuals to try and game the system by under reporting income in order to receive a marketplace subsidy and pay a lower monthly premium.
What May Happen if You Receive an Unwarranted Subsidy
The ACA/Obamacare marketplace was developed to help those making between 100% and 400% of the poverty level. It allows for people to pay for their coverage on a sliding scale. The sliding scale is determined by age and income. The younger you are and the less you make the lower the premium you must pay. The premium itself doesn’t change. This is an extremely important point. The premium isn’t reduced by the insurer. The premium cost is reduced because the government pays part of it. The high costs of health care and coverage and the attractiveness of the subsidy can lead some people to engage in practices that can be financially costly. It may lead some to understate their income. What must be remembered, if one understates income, the government will balance bill for their portion. See below.
If you feel, you are paying too much for the ACA/Obamacare coverage you have or want to revisit your estimated income projections for 2020, reach out to me at 917 710 2453 or [email protected]
Health Coverage Specialist Licensed Nationwide. Non-practicing Attorney. Affordable Options: Families + Self-Employed ??
5 年Love it Kenneth!!