What If You Can't Afford Health Insurance?
Fortunately, thanks to the Health Insurance Marketplace, you are able to receive health insurance that is subsidized and is theoretically more affordable. However, if you experience a dip in your income, you may find it difficult to afford health insurance. Under these circumstances, there are many things you can do to make sure that you are still insured.
Understand The Grace Period
There is a large percentage of new health insurance customers who lose their health insurance because they fail to make their first payments. Other customers run into problems months down the road and have a missed payment, which leads to the health insurance policy being canceled. Fortunately, if you qualify for subsidies, you also qualify for a generous grace period of 90 days. In the first 30 days, the health insurer must still pay claims. However, within the 60 to 90 day period, you may not have your health expenses paid until you pay your premium, which can place you in a difficult situation if you are unexpectedly hospitalized.
Minimize Your Out-Of-Pocket Expenses
Another problem you might run into are the out-of-pocket costs. This includes deductibles and co-pays. If you are not sure that you will be able to shoulder these payments, you should ideally seek a health insurance plan that does not require out-of-pocket expenses.
Be Aware Of The Subsidy Cliff
Another challenge regards your subsidies. Your subsidies are based on how much you are expected to earn in a particular year. However, if you earn more than expected, you will be required to pay back all of your subsidies through your taxes.
Look For Other Benefits
Look for other benefits besides the standard subsidies. If you live in a state that accepts Medicaid, you can receive treatment based on your Modified Adjusted Gross Income. If you are not qualified for this program, another option is to get a less expensive catastrophic plan.
You May Not Be Forced To Pay A Fee
If you are unable to afford health insurance, you may be forced to pay a fee for failing to comply with the mandate. Of course, you do not have to pay a penalty if your income falls below a tax filing threshold. Also, if your coverage would cost more than 8% of the household income per person, you are exempt. While it might seem insurmountable to purchase health insurance, from a place like Davies-Barry Ins, always keep in mind that there might be surprising options available.
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