Health insurance is one of those things you really should never be without. It only takes one trip to the emergency room and a battery of tests to potentially leave you owing thousands of dollars in medical bills – bills that could quickly become medical debt if you don’t have a pile of cash liquid in your pocket. savings account.
Some people have access to subsidized health insurance through their employer. If you are self-employed or work for a small business that does not offer a health plan, you will generally need to purchase your own coverage through HealthCare.gov.
If so, you have a limited window to sign up for coverage during annual open enrollment, which runs from November 1 to January 15. Since now is the time to choose your next health plan, here’s a step-by-step. approach to adopt.
Step 1: Find out how much you spent on healthcare last year
How much you spent on health care last year and how often you visited the doctor should influence your decision when it comes to choosing a health plan for 2024. Why? If you’ve racked up a lot of expenses over the past 12 months, that could be a sign that a lower-deductible plan is a good choice for you, as opposed to one with lower premiums and higher deductibles.
The health insurance plans you can choose from fall into four tiers:
The lower the tier of your plan, the less you will pay in your premiums. But lower-tier plans tend to have higher deductibles. The math might not work in your favor if you end up having to use your coverage a lot.
For example, a Bronze plan may have an annual premium of $2,400 but a deductible of $4,000. If you are injured and have to pay this entire deductible, you are at risk of $6,400. A higher-tier plan can cost you $3,600 a year in premiums, but has a $1,200 deductible. So that would make you pay $4,800 instead of $6,400.
Step 2: Update your personal information
The cost of your health coverage will depend on factors such as:
- Your geographic location
- The size of your family
- Your income
It’s important to update this information annually in your HealthCare.gov account because it could dictate what health plan options you’re presented with and what your costs will be. Keep in mind that you may be eligible for a health insurance subsidy that offsets your costs based on your income and family size. It is therefore important to ensure that the information is up to date.
Step 3: Review plan choices in your area
Once you update your personal information, you will receive a list of plans to choose from. Then it’s really about doing the math and using common sense based on your anticipated healthcare needs and expenses.
When looking at plans, pay attention to premiums as well as deductibles. Also check which plans are eligible for a Health Savings Account (HSA), if that’s an option you want to take advantage of.
Keep in mind that the tax savings you get from contributing to an HSA could help offset the expenses of a higher-deductible plan. Plus, you’ll typically get lower premiums when you opt for a plan with a higher deductible.
If you’re responsible for securing your own health insurance, you have a pretty big decision on your hands. Take time to explore your choices in the coming weeks and don’t rush through the process. You don’t want to act in haste and end up with a not-so-great plan.
Alert: The highest cash back card we’ve seen now has a 0% intro APR until around 2025
If you use the wrong credit or debit card, it could cost you a lot of money. Our experts love this top pick, which includes a 0% introductory APR for 15 months, an insane cash back rate of up to 5%, and all for free. annual subscription.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
Read our free review
#Steps #Choosing #Health #Insurance #Plan
Image Source : www.fool.com