Affordable Individual Health Insurance
When you're worried about your health, it's important to be proactive about your health insurance. Did you know the Affordable Care Act now requires all individuals to have health coverage in order to avoid a tax penalty? If you want an affordable individual health insurance plan and are currently uninsured, here are some tips on how to get the best prices for the coverage that's right for you.
The Affordable Care Act (ACA) requires all individuals to have health insurance coverage in order to avoid a tax penalty. If you want affordable individual health insurance, the policies for you may not be easy to find. However, insurance companies are required to meet certain standards, and the law sets limits on what they can charge you when comparing prices between different plans.
You could also consider the Health Insurance Marketplace (also known as "Obamacare") if it meets your needs. The Marketplace is an online marketplace where individuals and families that meet certain income level can compare plans from different insurers on one easy-to-use website at www.healthcare.gov . Beware of scammers who try to get your personal information and use it to charge you for insurance or for other products.
There are many factors that affect how much health insurance costs, such as:
1. Where you live – premiums tend to be highest in large cities, like Newark NJ and New York City. So if you live in or near a major metropolitan area, expect health insurance premiums to be higher. If you don't want to spend more money on an individual insurance plan, consider moving to a smaller city where premiums tend to be lower.
2. Age – premiums are generally lower for younger individuals, but older individuals pay more for coverage. Younger people are less likely to incur big medical expenses, so they can get cheaper individual health insurance coverage.
3. Gender – Premiums vary based on your gender and your age group (i.e., women pay more than men). If you're a woman without children and in your 20s, you'll probably pay less for health insurance than a man in your 30s with the same income level. However, by the time you hit 50 years old, men start to catch up in price with women and their premiums may be around the same cost as women's policies.
4. Where you live and your health – If you have a pre-existing condition or plan to use a lot of health care services, you'll likely pay more for insurance. Also, if you don't live in a major city, your premiums may be lower since the cost of medical care tends to be lower in rural areas. However, since people in rural areas tend to use less services, the cost of an individual health insurance plan for them is often less than it would cost for someone living in a big city.
5. Your income – The lower your income level is (generally between 100%-400% FPL), the more subsidies help reduce your out-of-pocket costs and lower your premium cost. If you don't qualify for these subsidies, you may have to pay a lot of money for health insurance.
You can also check out these resources if you're looking for lower premium costs when choosing an individual health insurance plan:
Health Insurance Marketplace – If the Health Insurance Marketplace meets your needs and income requirements, then it's worth looking into. Some plans in the Marketplace include free preventive care and require limited cost-sharing (like copays and coinsurance) even after you hit your deductible. If it makes sense to go with a plan from the Marketplace versus a private insurer, then this doorway may be worth exploring. Be sure to check out the fee schedule, which will help you know how much you'll pay for different services. The Marketplace also has health insurance cost calculators online to help you estimate the cost of insurance.
You can also check out these resources if you're looking for lower premium costs when choosing an individual health insurance plan:
Healthcare.gov – If affordable individual health insurance is your goal and the Health Insurance Marketplace meets your needs and income requirements, then it's worth checking out. Some plans in the Marketplace include free preventive care and require limited cost-sharing (like copays and coinsurance) even after you hit your deductible. If it makes sense to go with a plan from the Marketplace versus a private insurer, then this doorway may be worth exploring. Be sure to check out the fee schedule, which will help you know how much you'll pay for different services. The Marketplace also has health insurance cost calculators online to help you estimate the cost of insurance.
The Internet – If you're committed to finding a lower-cost individual health insurance plan, shopping on the Internet is an option worth exploring. For example, eHealthInsurance's online marketplace can help you easily compare quotes from leading insurers and agents in your area and across the country without having to visit company websites or speak with an agent on the phone. You can also save hundreds of dollars by getting quotes from several providers in minutes.
The Affordable Care Act (ACA) and the Health Insurance Marketplace are the only two health insurance options available to most uninsured residents of New Jersey. However, there is another option: purchasing a plan across state lines because it is not regulated by the ACA. These plans must meet certain requirements, but they're not subject to federal or state regulations like the ACA and its exchanges. The plans are often lower cost than what you'd pay for individual health insurance if you live in New Jersey, but they're purchased out-of-state.
You generally have to pay the full cost of plans purchased out-of-state, so this option isn't right for everyone. But if you'd like to explore your options, here are some steps that you can take:
1. Contact the insurance company and ask about the plan details (like any deductible costs, out-of-pocket expenses and what's covered).
2. Get a quote from them or call them to get a quote from a specific state that you're interested in.
3. Call your current insurer or agent and get a quote from them to see how the out-of-state plan compares to the local plans you're considering.
4. See if there are any licensing requirements from your state, especially if you plan to purchase an insurance plan from a state that is not your own. You may need to add an additional rider or meet special residency requirements before purchasing a policy out-of-state.
5. Remember that the costs of medical care could be higher in the state where you buy coverage out-of-state, so make sure you understand what your covered benefits are and how they compare with what's offered in New Jersey before you buy coverage outside of New Jersey.
Conclusion
Individual health insurance plans are available to residents of New Jersey who meet the state's minimum requirements. However, if you don't qualify for a plan through your employer, or you don't meet the requirements to use one of the other avenues to obtain affordable individual health insurance, then you'll have to purchase a plan through Healthcare.gov.
The ACA has many provisions that make buying and using an individual health insurance plan easier, regardless of whether or not it is sold through Healthcare.gov. For example, many plans must cover preventive services without charging consumers anything out of pocket, and most plans have limited cost-sharing once an individual meets his/her deductible.