Interested in the Obamacare health plan but concerned about the cost of the premiums? Here’s some good news. Obamacare, a colloquial term for ACA-complaint plans available through the Marketplace, is very affordable because of the additional premium tax subsidies. Nearly 96 percent of the individuals who registered through InsuranceShopping during the 2021 Open Enrollment get approved for financial assistance. High-quality health coverage is accessible and affordable, thanks to all cost-savings alternatives.
How much do Obamacare insurance premiums cost on average per month?
In 2020, a standard second-lowest-cost silver plan for one person would cost approximately $462 per month. However, that figure dropped to $452 per month in 2021.
But because ACA plans offer income-based subsidies, the sticker prices don’t list the subsidized costs. Ninety-six percent of all InsuranceShopping enrollees qualified for some form of financial assistance, on average saving about $650 per month and making the average monthly premiums to only $51. In addition, nearly 20 percent of all InsuranceShopping users had access to fully subsidized, $0 per month plans.
What factors influence the premiums of Obamacare health insurance?
The cost of Obamacare plans will vary depending on your location, age, household size, and income. Your insurance premiums will cost you more if you use tobacco products. The type of policy (and metal-level of the program) you select from the Marketplace may also affect your healthcare price.
These are the only factors that will impact your premium costs because the Affordable Care Act made it illegal for plans to charge different rates based on gender.
You can find more information about individual Marketplace premiums by the metal tier categories and state over the last few years here.
How do Obamacare premium subsidies work?
You will only qualify for Obamacare subsidies for Marketplace plans if your income is between 100 and 400 percent of the FPL (or Federal Poverty Level). This means you will save more money on the Obamacare plans because they will reduce the cost of your monthly insurance premiums. There are two types of Obamacare subsidies: premium tax subsidies and cost-sharing reductions.
i) Premium tax credits
Premium tax credits contribute to the affordability of Marketplace health insurance plans. You can use this credit every month to reduce your monthly insurance premiums, or you can choose to get the entire amount at the end of the year when you submit your annual tax returns. The amount an individual will get in premium tax credit is determined by their household size and yearly income. Also, you can use these premium tax subsidies for any metal-level plan.
ii) Cost-sharing subsidies
Cost-sharing reductions are “extra savings” available only to participants who sign up for a silver-tier plan. These additional savings reduce the amount of money a person needs to pay for copayments, deductibles, and coinsurance. Also, you will have a lower out-of-pocket maximum if you meet the requirements for cost-sharing reductions.
What is the average annual deductible for a Marketplace plan?
According to the Kaiser Family Foundation, the average annual deductible for bronze Marketplace plans in 2019 was $6,258. In the same year, we observe the average yearly deductibles of $1,335 for the gold plan and $4,375 for the silver plan. The average annual deductible for platinum plans was $48. These figures are for programs that had combined healthcare and prescription medication deductibles.
In 2019, the average annual deductible for health plans with separate healthcare and prescription medication deductibles was $5,977 for bronze plans, $4,043 for silver plans, $1,581 for gold plans, and $365 for platinum plans. Furthermore, the annual out-of-pocket maximums for the combined healthcare and prescription medication deductible plans were $7,374 for a bronze plan, $5,885 for a silver plan, $2,200 for a gold plan, and $1073 for a platinum plan.
Please note that all Marketplace plans are classified into four metal tiers: bronze, gold, silver, or platinum. Programs are assigned to one of these groups based on their “actuarial value.” The term “actuarial value” refers to the average costs that a given health plan covers for medical bills for a specific group of members. The actuarial value of bronze plans is 60 percent. For the silver plan, the actuarial value is 70 percent. The actuarial value of gold plans is 80 percent, and that of platinum plans is 90 percent. In other words, the higher the actuarial value, the greater will be your monthly premiums. Suppose you need a lot of healthcare in a given medical year. In that case, the higher monthly premiums will result in more significant cost savings because your plan will pay out and cover a substantial share of your medical costs.
How to obtain Obamacare health insurance coverage
When you shop for Marketplace plans through health government portals or InsuranceShopping, you will be able to see if you qualify for discounts. These subsidies and cost-savings provisions help make Obamacare plans more accessible and affordable to all Americans seeking quality healthcare irrespective of the status of their employer-granted benefits.
You can compare health plans and see the amount of subsidy you qualify for using InsuranceShopping.com.
What are all of my insurance coverage options?
i) Obamacare and Marketplace plan
You can sign up for Marketplace insurance coverage, known as Affordable Care Act or Obamacare insurance. See programs and prices here.
You may qualify for the Medicaid health insurance program based on your income. Check your eligibility and apply for Medicaid coverage through InsuranceShopping.com.
iii) COBRA coverage
If you recently switched your job and want to continue your existing plan, in such a case, COBRA coverage is your best possible option. COBRA insurance is more expensive than Marketplace health insurance, but it allows you to keep the coverage you already had. Learn more about the differences between COBRA and Obamacare health insurance.
Once you reach the age of 65, you become eligible for Medicare coverage. Call us to sign up at +1 855-913-1570.