We all know the costs of healthcare are high — and so are the costs of healthcare insurance. In fact, healthcare premiums are on the rise: According to the National Conference of State Legislatures, annual premiums rose three percent between 2015 and 2018 — that’s faster than both wages and inflation. Moreover, USA Today reports that the total annual premium for the most common employer-provided health plan for a family of four will be $28,166 in 2018. For many of us, that’s a hefty sum.
Fortunately, Open Enrollment 2019 is about to begin. That means if your income is below a certain level and you purchase health insurance through the state marketplace, you may qualify for federal premium assistance or tax credits to help cover the costs of your healthcare premiums.
For an in-depth look at the full suite of services offered by Grand Mutual Insurance, get in touch with us today.
How Is California Subsidizing Health Insurance?
The Los Angeles Times advises that due to attempts to repeal the Affordable Care Act in favor of association health plans or short-term coverage, healthcare premiums are on the rise. In California, however, approximately 90 percent of people who get their coverage through the marketplace and qualify for federal subsidies will also receive higher subsidies than last year. As a result, for enrollees who don’t switch plans, premiums will only increase by an estimated six percent.
It’s also important to note that California lawmakers are considering ways to strengthen the Affordable Care Act, for example, by preventing consumers from signing up for association health plans without robust protections or regulating the sale of short-term insurance plans.
Do You Qualify for Advanced Premium Tax Credits or Cost-Sharing Reductions?
During Open Enrollment 2019, which runs from November 1st, 2018 to December 15th, 2018, you can purchase a health insurance plan. The different categories of plans are bronze, silver, gold and platinum. Bronze plans have the lowest monthly premium, highest costs of care and highest deductibles, while platinum plans have the highest monthly premium, low costs and low deductibles.
You can also see if you qualify for an advanced premium tax credit, which is a dollar amount that’s applied to your monthly premium to offset your costs. According to HealthCare.gov, you’re eligible if your income is between 100 percent and 400 percent of the federal poverty level or FPL. The actual amount you’ll receive depends on your actual income. In 2018, the FPL for 48 states and Washington D.C. were as follows:
- Household of 1: $12,140
- Household of 2: $16,460
- Household of 3: $20,780
- Household of 4: $25,100
- Household of 5: $29,420
- Household of 6: $33,740
- Household of 7: $38,060
- Household of 8: $42,380
Additionally, if your annual income is between 138 and 250 percent of the FPL and you enroll in a silver plan, you may qualify for a cost-sharing reduction or CSR. This means that if you access care, your deductibles and copays will be lower.
Navigating the Application Process with Grand Mutual insurance
Navigating the healthcare insurance application process is complicated. Fortunately, there are knowledgeable professionals like the team at Grand Mutual Insurance Services who can help you find the right plan for your and your family’s needs. For more information, call Sharon Ezra at 818-836-7610 or email her at [email protected].
