Health insurance is a crucial aspect of healthcare that families have to contend with. It provides coverage for unforeseen medical expenses and, hopefully, delivers some peace of mind. Because of the varying costs of healthcare, health insurance can be relatively expensive. That’s why understanding the different types of health insurance marketplace plans and how to use them can be vital to getting the most value for your money.
Health insurance marketplaces are organized platforms that allow consumers to compare and purchase health insurance plans. Marketplaces can be established by a state or run federally. The health insurance marketplace functions differently depending on the state, but the general process of getting coverage is usually the same.
In this brief guide, we’ve put together some of the essential things to know when using the health insurance marketplace for the first time.
1. Know the insurance basics
There are several basic insurance terms you should know before shopping for a plan. For example, an insurance premium is the amount you pay each month for coverage. Deductibles refer to the amount you pay out-of-pocket before insurance kicks in. Copayments are the fees you pay when visiting a physician or purchasing medication. Coinsurance is the percentage you pay for a medical service after the deductible has been met.
2. Understand the plan tiers
In the health insurance marketplace, you’ll find different “metal” plans that offer various levels of coverage. The four primary plan categories are:
– Bronze: the plan with the lowest monthly premiums and the highest out-of-pocket expenses;
– Silver: the plan with moderate premiums and out-of-pocket costs;
– Gold: the plan with higher monthly premiums but lower out-of-pocket costs;
– Platinum: the plan with the highest premiums but offers comprehensive coverage for medical care.
3. Shop around
Once you understand how health insurance works, it’s essential to shop around and compare plans. You can use healthcare.gov, the government website, to help you find a health insurance plan based on your budget, the metal plan you’re interested in, and the coverage options that are important to you.
4. Enroll during open or special enrollment
To sign up for a health insurance plan through the marketplace, you need to enroll during the open enrollment period, which usually starts in November and lasts until mid-February. During this time, you can apply for and enroll in coverage for the following year. However, some states have different open enrollment periods.
If you miss the open enrollment period, you may still be eligible for coverage through a special enrollment period. This could happen if you experience a significant life change such as getting married, having a child, or losing health coverage through work.
5. Understand subsidies and financial assistance
Many people qualify for subsidies and financial assistance to help pay for health insurance through the marketplace. The subsidies are determined by your family size, income, and other factors.
6. Utilize preventative care benefits
Most health insurance marketplace plans offer preventative care benefits that don’t require a copayment, deductible, or coinsurance. These benefits assist in avoiding health disorders by taking early measures, such as cancer screening, regular checkups, and flu shots.
In conclusion, purchasing health insurance through the marketplace can be an overwhelming process. However, by understanding the basic terms and the different plan tiers, using the website to shop around, and taking advantage of available subsidies, you can make informed choices to get the best coverage possible.