How to Choose a Health Insurance Plan on the Marketplace?

Imagine you just lost your job and its employer coverage or aged out of your parent's plan. Whatever the reason for losing coverage, you should consider how to choose a health insurance plan from the marketplace. The marketplace may sound overwhelming, but it's easier than you think to compare plans and enroll. That way, you'll be able to prepare for small or large medical expenses. Read on to learn more.

Preview Plans

The first step you can take for how to choose a health insurance plan is to preview plans on the marketplace. Anyone can input their ZIP code throughout the year to see what plans they can select. You may not always be able to enroll in any plans. Similar to Medicare, the health insurance marketplace has an open enrollment period each year, or you need to have a qualifying life event to enroll. However, you can preview plans to get an idea of what you'll be able to choose from when you can enroll. You can start taking note of potential costs and available coverage to make the enrollment process easier. If you'll have others on the plan with you, you can talk about their coverage needs. Then, when you prepare to enroll, you'll be able to select a plan that works for everyone.

Create an Account

Next, you'll need to create an account on the health insurance marketplace website. First, consider if your state has its own marketplace, such as California or Maine. In those cases, you should sign up for an account with your state's website. If you live in a state that doesn't use its own marketplace, you can create an account with the federal site to view and compare health plans. You will need to provide the state where you live, add your personal information, and answer three security questions. Then, you can start to look at insurance plans as someone about to enroll in one.

Estimate Your Income

One vital part of how to choose a health insurance plan is being able to afford it. After you create an account or when you preview plans, you can estimate your income for the year you're applying for coverage. If you make less than 400% of the federal poverty line (FPL) for your household size, you can qualify for a subsidy. You don't need to provide the most accurate numbers, but the closer you get, the better. Use your previous year's income to get an idea of how much you expect to make. Alternatively, you can overestimate to underestimate the amount of financial assistance you'll receive.

Review Local Plans

After you enter your estimated income, you will be able to look at available health plans in your area. You will need to give your ZIP code if you haven't already so that the marketplace can show you local plans. Depending on where you live, you may only have a few options regarding insurance companies and health plans. However, you may have more options, which can be overwhelming. As you look at the plans, consider sorting them by premium or deductible to find the most affordable options. Alternatively, you can choose to look at plans from one insurance company.

Input Doctors and Prescriptions

One of the best steps to help you get the best health insurance marketplace plan is to add information for your doctors. If you take prescriptions regularly, you should also add those. Then, you can see if certain plans will cover your medications and if doctors will accept your insurance. Be sure to add these details for anyone who will be on your plan, including a spouse and dependents. After you add those details, you can filter the marketplace search results accordingly. You won't have to scroll through a ton of plans that won't cover anything that you need to take.

Consider HSA-Eligible Plans

Before you get a health insurance plan, you should consider if you want to use a health savings account (HSA). An HSA lets you set aside money before taxes to cover qualifying health expenses. However, you will need to enroll in a plan that meets certain requirements, such as having a high deductible. In many cases, an HSA-eligible plan can save you a lot of money. The premiums are usually lower, and you will only need to pay for in-network coverage before you hit your deductible. After that, your insurance will cover all of your costs as long as you stay within your network.

Run the Numbers

The marketplace search lets you estimate the total cost of your care. You can tell it you expect low, medium, or high levels of plan usage, and it can tell you how much it thinks each plan will cost. However, you may want to use a spreadsheet to review the numbers yourself. Add up the costs of visiting doctors, paying for prescriptions, and obtaining other medical services. Add those to the cost of premium and account for your deductible. Then, you can get a more accurate estimate of your health care costs, and you can choose an insurance plan that will meet your budget and offer enough coverage.

Apply for Your Plan of Choice

After you compare numbers for different plans and review coverage levels, you can start an application for coverage. You'll need to do this during the open enrollment period between November 1 and December 15. However, you may be able to enroll outside of that window if you have a qualifying life event. Examples include losing a job, having a baby, or moving to a new ZIP code. Be sure you have your personal information, income estimate, and other details ready. Then, you can complete the application in one sitting, and you can wait for your results to come back.

Do You Know How to Choose a Health Insurance Plan?

Knowing how to choose a health insurance plan is essential when you don't have an employer to guide you. The marketplace can be confusing the first time you use it, but it doesn't have to be scary. Be sure to look at your plan options and your budget to find a plan that meets your needs. Then, you'll have enough coverage to help in case of a medical emergency. Are you or a loved one looking to enroll in Medicare instead of the marketplace? Contact us to learn how we can help.