Enrolling in insurance under the Affordable Care Act (ACA) can feel like solving a complex puzzle.
With a wealth of information to go through, paperwork to manage, and choices between Bronze, Silver, or Gold plans, it’s easy to make costly mistakes.
Whether you’re a first-time enrollee or a seasoned veteran, here are some top Obamacare mistakes to avoid and how you can steer clear of them.
Waiting Until Deadline:
Waiting until the deadline is near can lead to unnecessary stress and missed opportunities for securing the best coverage.
To avoid this pitfall, mark your calendar with key dates and start the enrollment process as early as possible. This proactive approach ensures you have ample time to explore your options, understand the details of various plans, and make informed decisions.
Don’t let last-minute rushes compromise your health coverage; planning ahead is crucial for obtaining the ideal policy tailored to your needs.
Relying on Auto Enrollment:
It’s tempting to let your insurance provider automatically re-enroll you in the same plan each year because it’s easy. However, a plan that worked last year might not be the best option now. The healthcare landscape is always changing, with new insurers and plans regularly coming on the market. In fact, there are more plans available now, with the average consumer having about 83 plans to choose from, compared to 46 last year. Don’t miss out on better options by skipping the review process!
Take a moment to check out the current plans and compare them with your needs. You might find a plan that better suits your evolving healthcare requirements.
Ignoring Financial Support:
The ACA offers cost-sharing reductions and premium tax credits, which can help lower your healthcare costs.
Many people miss out on these savings because they assume they don’t qualify. It’s important to check if you’re eligible for subsidies, no matter your income level. The Senate recently extended improved subsidies until 2025 as part of the Inflation Reduction Act.
These incentives can significantly reduce your healthcare expenses and make coverage more affordable.
Getting Overwhelmed by Options
With so many options, it’s easy to feel overwhelmed and choose a plan at random just to finish the process, which can lead to costly mistakes. Instead, follow these steps to streamline your decision-making:
- First Step: List your expenses, including your maximum emergency payment. Include your preferred doctors, providers, and current medications.
- Second Step: Use the Marketplace website to find plans in your area. Enter your zip code and refine your search based on your list.
- Third Step: Filter out plans that don’t meet your coverage or price needs. Aim to narrow it down to no more than 15 plans to make it manageable.
Focusing Only on Premiums or Deductibles
It’s easy to focus only on a plan’s premium or deductible, but those details don’t tell the whole story. A low-premium plan with a high deductible might cost you more in the long run. Conversely, a high-premium plan with better coverage and a lower deductible could save you money.
Add up the premium, deductible, out-of-pocket expenses, and copayments/coinsurance to get a complete picture. Use past healthcare statements or free online tools to estimate your future medical costs and find the most economical plan.
Underestimating Your Income
Make sure to estimate your income as accurately as possible because it has an impact on your premium subsidies. If you understate your income, you may receive more subsidies, but if your real income turns out to be higher, you will have to repay the difference when it comes time for taxes. Overestimating will result in larger monthly payments, however, tax season refunds are possible.
Add your spouse’s income to your gross income and account for anticipated changes such as work changes or raises. You can avoid surprises later on by making accurate estimates.
Not asking enough questions
Health insurance jargon can be complicated, so don’t hesitate to ask for help. If you need clarity, reach out to a certified insurance agent or a “navigator.” It’s important to ask questions to understand your options and choose the best plan for your needs.
The free navigators and glossary on Healthcare.gov are great resources. For personalized guidance, call 1-800-273-8115 to speak with professionals who can help you through the process.
Not Updating Your Personal Information:
Life changes, and so do your healthcare needs. If you don’t update your personal information, like your address, income, or family status, you might end up with incorrect coverage, unexpected costs, or even lose benefits. Make sure to inform your healthcare marketplace of any changes to keep your coverage accurate and up-to-date with your current situation.
Assuming You Won’t Qualify for a Subsidy
Many people mistakenly believe they won’t qualify for financial help with their health insurance because of their income level.
However, thanks to expanded subsidies under the American Rescue Plan Act (ARPA), more people are eligible than ever before. For 2022, income limits have been relaxed, so it’s worth exploring the available plans—you might find that you can afford more than you think.
Over to You…
Understanding and choosing the right health insurance plan through Obamacare doesn’t have to be overwhelming. By steering clear of common mistakes listed here, you’ll be more prepared to select a plan that suits both your requirements and financial situation. Wishing you a smooth and successful enrollment process!
To learn more about Obamacare, get in touch now with our experts.
Navigating Obamacare doesn’t have to be daunting. By avoiding these common mistakes, you’ll be better equipped to find a plan that fits your needs and budget. Happy enrolling!