Health Insurance Cost Saving Options

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The new health care exchanges are constantly in the news recently as people are trying to figure out which options are available to them and also, how the exchanges themselves will function. This new option for health care insurance will provide insurance options for individuals and families that are currently not getting health care insurance. The new Affordable Care Act has set rules thevery American must have health care insurance or pay a fine if they don’t. Some are not pleased with the new law and will opt to pay a fine instead of the monthly cost for health insurance and others are breathing a sigh of relief.

Pre Medicare Retirees

Some people have opted to take an early retirement from their current job, which is great if that option is available. But when leaving a current job, health insurance coverage will also end. Most policies allow you to stay on the plan for a period of time after leaving your employer. So what do you do between the time the health care coverage through work ends and the Medicare benefits begin at age 65. This is where the health care exchanges will benefit. The premise behind the exchanges is that more insurance companies will provide the same coverage to individuals so they will automatically become more competitive, and cheaper for people to buy. Another benefit of the exchange is that no one can be turned down for insurance. The federal law dictates that the exchanges have to accept anyone and they can not increase the cost of premiums if an individual has a pre existing condition. If there is a gap between any coverage provided through your employer and when you are eligible for Medicare benefits the exchange is the place to go for cost saving options.

Tax Credits

Not only will all individuals in America be required to have health insurance but the government is making it really easy to get it and pay for it. A recent article indicated that some employers are unwilling to cover spouses or families for employer provided health insurance. If this is the case there are options that allow families to get affordable insurance through a tax credit offered by the government.

The tax credit applies to individuals and families that have an income up to 400 percent of the poverty line, which is $45,960 for individuals and $94,200 for families. The tax credit will help working class families with affordable health care and the best part is that you don’t have to wait until filing taxes to get the benefit.

The tax credit will be determined immediately when you purchase the health care insurance and can be controlled by you. Once the application is submitted you will be notified of how much tax credit you are eligible for and how you would like to use it. Then the tax credit amount you determined is sent directly to the insurance company and applied to your premium payments in an instant. Health insurance quotes, which do not include the tax credits, will help families and individuals to better manage their monthly payments.