Health Insurance is a very important part of our well-being, as it protects us from unexpected healthcare costs. There are plenty of health insurance plans available to enroll in, and making sure that you choose the best plan can be a difficult task. This is an even harder task if you are on a limited budget. In this blog, we will discuss “Which is the least expensive type of health insurance” and how the Affordable Care Act which is sometimes referred to as Obamacare plays a key role in providing low-cost health insurance.
Generally speaking, the least expensive type of health insurance is what we call a high deductible health plan (HDHP). This type of coverage is based on having a higher than usual deductible than your typical health insurance plan. The deductible is the dollar amount that the insured must first pay out of pocket until the health insurance benefits kick in.
HDHPs are known for having lower premiums because of the higher deductible than most other plans. This makes them a popular choice for those who would like to have health insurance coverage at the lowest cost possible. Just because you have the HDHP does not mean that you are covered right away. You must still first meet your higher out of pocket expenses that for some people may not be the best option.
An attractive benefit of an HDHP is the fact that it is considered health savings account (HSA) compatible. These are tax free savings accounts that can be used to pay for specific medical bills that are related to your health insurance cost. Each year you can contribute to your HSA a defined amount set by the federal government that is tax-free.
The biggest advantage of the HSA is you save money on taxes while also putting aside additional funds to cover your future healthcare costs. The HSA is very popular among younger healthy people who do not incur very much medical costs.
HDHP plans will also help you to have preventive care coverage for no additional costs. The carriers will build this coverage into the plans as the ACA law requires them to do so. Whether it’s a routine checkup or a needed vaccine you will be covered. For preventative coverage you are covered right away even before the deductible has been met. Instead, the preventative coverage would be at no cost to you as long as you are paying your monthly premium cost.
If you are a person with a chronic health issue the HDHP may not be the best option for you. Especially if you frequently have medical care needed throughout the year and having a plan with a lower deductible and copays may be better suited for you.
The ACA helps discount health insurance costs for those who qualify in the form of subsidies. These are paid by the federal government to the health insurance carrier to reduce the health insurance cost based on a number of factors but most notably income level.
If you would like to qualify for a government subsidy there are a number of levels that you will need to fall into. Most often people with lower income will qualify for a higher subsidy amount which in some cases can lead to a plan that costs them $0.
The ACA also expanded Medicaid which is helping millions of Americans get coverage for free as well. This is a government run health insurance plan for people whose income is considered at the lowest level. Medicaid typically provides free health coverage for those who qualify.
In order to qualify for a Medicaid plan there are specific qualifications set by the federal government department over seeing this. Depending on your specific state each state will have their own qualifications.
For more information about ACA Health Insurance go to mychoicehealthinsurance.com