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It is no secret that healthcare costs are rising. Health insurance is already one of the heavier bills in the American household. With over 48% saying that they are worried about affording their health insurance premiums. But what if we told you that there were a few steps you could take to lower those premiums?
From your income to subsidies and types of plans available in the marketplace. This is your complete guide on how you can save money on health insurance. Let’s dive in!
What makes health insurance affordable?
While there are other types of health insurance we will be focusing on Obamacare (Affordable Care Act) insurance for this article.
Inside the ACA, the main reason as to why health insurance is cheap for some is because it gives households a Premium Tax Credit (health subsidy) to help pay for their plan. Without this credit everyone would be paying hundreds to thousands a month (and some already are). It is the most important feature of the marketplace.
Do I qualify for a health subsidy?
To qualify for a health insurance subsidy, you or your household need to fall in between 100% to 400% of the Federal Poverty Level. But what does that mean?
If you make too little, you do not qualify and if you make too much you do not qualify. Check out the income limits chart and use a health insurance calculator to find out if you qualify and how much help you will get!
How Do I Save Money on Health Insurance?
There are a few things you can do to lower your health insurance premiums. While it may not work for all, it is always worth a shot. Let’s go into the 5 steps to save money on your health plan.
- Compare the marketplace
One of the best features of Obamacare is the marketplace that it has where you can choose from the hundreds of plans available. Some people make the mistake of already knowing what company they want and don’t even think about comparing options.
While family and friends have a certain company, and you want to join them, it may not be the most affordable for you! Compare and find one that has a balance between coverage and price.
- Look at high deductible health plans
It may seem counterintuitive but getting a high deductible health plan will be cheaper in some cases. HDHPs are cheaper than a traditional plan and will save you money in the long run (assuming you are healthy and rarely use your plan). Only do this if you don’t expect frequent medical care and just have insurance for a worst-case scenario.
- Get an insurance BROKER
Possibly the most important out of the 5 steps is to find a health insurance broker. A broker has access to ALL the carriers in the marketplace so they will always find you the best deal.
Some agents can only sell you a limited amount which sometimes means they leave you out of the most affordable plan. That is why a health insurance agency is important and should be your main goal!
- Report income correctly
A mistake often seen when people apply for health insurance is incorrect income. For example, some get paid through 1099 and put their pre-tax income so they apply with way more money than they should have. That means that they do not get as many premium tax credits and now they pay way more for their plan.
Other includes not listing dependents (it gives you more credit), or not putting everyone inside your tax household. All this means that you end up paying more.
- Maintain a healthy lifestyle
The last on this list is one of the most important but is often overlooked. Healthier people go to the doctor’s way less. It is that simple. Most healthcare costs are not premium related and more so medical procedures. If you want to save money on health insurance, become a healthier person! Your wallet and body will thank you in the long run.
Next steps to take
We hope that after reading this, overpaying is just a thing of the past. Whether it is getting a high deductible health plan or finding the best insurance broker in the business now you know that there ARE ways to save money on health insurance. Healthcare should not be on the top of your expenses list, and you should do something to control it, find a health insurance broker like Arizona Health Insurance Agents
