What Type of Health Insurance Plans are Available
The landscape of health insurance in the States is changing. And while the arrival of 2014 meant must buy health insurance, health plans are subject to new rules, and health insurance exchanges are open for business, the marketplace looks much as it always has. Exchanges are not the only place to buy a health plan. Major medical insurance, while required, is not all that is available. Below, we’ve outlined coverage options for individuals and families, included important information related to each, and highlighted where plans may be purchased moving forward.
Individual major medical insurance plans Where to buy: exchanges; private marketplace The Affordable Care Act requires that have major medical insurance unless they qualify for an exemption. This is known as the individual mandate or individual responsibility requirement. While everyone is allowed a single gap in coverage of less than three months, those who go without coverage beyond that must pay a tax penalty known as an individual shared responsibility payment. Minimum essential coverage includes individual major medical insurance plans,
employer-based group health insurance plans, Medicare, Medicaid, CHIP and TRICARE, among others. Individual plans may be purchased on or away from a state-based or federally facilitated health insurance exchange. Whether or not an individual health plan is sold on or off the exchanges, it will include certain preventive care benefits and health care services in 10 categories of essential health benefits at no additional cost. Consumers are free to purchase their coverage in the private health insurance plans marketplace; however, only plans purchased on exchanges qualify for premium tax credits and cost-sharing subsidies. Eligibility for credits and subsidies is income-based. You can use the Health Care Reform Calculator, which was listed among The Financial Times “Best Online Tools for the Toughest Health Questions,� to estimate your potential tax credit.
Temporary health insurance plans Where to buy: private marketplace Temporary health plans known as short-term medical insurance offer coverage for as few as 30 days. These will still be available in 2014 and may be an option for those who find themselves temporarily uninsured due to missing the period, divorce, job loss, turning 26 and no longer being eligible for a parent’s plan and seasonal employment, among other circumstances. Short-term medical plans do not qualify as minimum essential coverage under the Affordable Care Act, which means that they will not prevent you from facing a tax penalty should you go beyond the allowed gap. They do, however, offer some financial protection should you need health care due to an unexpected illness or accident between major medical plans. Because these plans are not subject key provisions, they are best suited for healthy individuals. You can be denied coverage due to your health history, and preexisting conditions may be exempt from plan benefits. Short-term medical plans are not sold on exchanges. They can be obtained through health deals, directly from a carrier, or with the help of an agent or broker.
[Source: https://aspiraamas.com/articles/what-type-of-health-insurance-plans-areavailable-in-2015]