Obamacare Premium, Deductible, Out-Of-Pocket

Imagine you left your job and no longer qualify for the company's health insurance. Before you freak out, consider the total Obamacare cost per year if you shop for marketplace plans. The cost doesn't have to be ridiculously high, especially if you do your research. You should consider the obvious, like premiums, but don't forget about deductibles and other expenses. Keep reading to learn more.

Premium

One of the biggest things that can affect your total Obamacare cost per year is the premium. Your premium is the amount of money you will pay each month for insurance. The price of the premium won't go up or down each month, so you can predict the expense for the whole year. However, the cost of an Obamacare premium isn't always the same. If you select a plan with more coverage, the premium will be more expensive, usually a few hundred to over a thousand dollars. On the other hand, you can select a plan with basic coverage to save money on your plan.

Deductible

Another thing that can help you estimate your Obamacare price is the deductible. The deductible refers to the amount of money you will have to pay before your insurance kicks in. With some plans, the insurance may cover part of the cost, and you'll pay a co-pay. Other plans will require you to pay for the entire cost of your medications or doctors' visits until you pay the amount of a deductible. Deductibles can be as low as $0 for some plans. However, they can be over $10,000 on other plans. Generally, a higher deductible will mean you have a lower premium and vice versa.

Out-of-Pocket Maximum

You should also consider your out-of-pocket maximum when estimating the cost of Obamacare. The out-of-pocket maximum refers to the maximum amount you'll have to pay for covered services in a year. Some plans have the same deductible and out-of-pocket maximum. Other plans will set the out-of-pocket maximum a bit higher than the deductible, so you can start to get some financial help before the plan covers everything. However, you may still need to pay for certain things after reaching the maximum. If you decide to see someone outside of your network, you will be responsible for the cost, except for in an emergency.

Factors That Affect Your Costs

When estimating your annual Obamacare cost, you should consider what may affect the cost. Many things can increase or decrease the amount of money you'll have to pay each year. If you know someone who has Medicare, they may experience similar factors. No matter how you get your health care coverage, you should understand what goes into the price. Then, you'll be able to select the best plan for you and budget accordingly. Here are some factors to think about when choosing a health plan.

Income

One of the most significant factors regarding the cost of Obamacare is your income. If you make less than 400% of the federal poverty line (FPL), you may qualify for a tax credit or subsidy. The less money you make, the higher your subsidy will be, so you can pay less on your premiums. You'll still need to pay for your deductible and out-of-pocket maximum. However, you might choose to enroll in a plan with a high premium and a low deductible. That may save you more money over the year if you don't have to pay the full price of the premium.

Location

You should also consider plans that are available in your area when estimating the total Obamacare cost per year. If you live in a bigger city, you may have access to more health plans than someone in a small town. Another thing to consider is that you may qualify for a bigger subsidy in one city than another. Be sure to look at plans using your ZIP code to get the most accurate estimate regarding subsidies. That will also help you view plans you're eligible for, so you can compare other costs. You won't have to add up the numbers only to find that they're way off from the plans where you live.

Household Size

The average cost of Obamacare will go up with the number of people on the plan. If you need insurance for yourself, you can expect to pay a lower premium than if you had a family. Your household size can also matter because it affects the FPL. A married couple with two kids may get a bigger subsidy than a single adult with no kids who has the same salary. Having others on the plan can also increase the deductible and out-of-pocket maximum. You'll need to spend about double as a family compared to a single person with the same plan.

Plan Usage

Another factor that can affect the Obamacare price for you is how much you use your insurance plan. If you're healthy and don't take any medications, you may only need to pay for your premium and one annual visit to the doctor. However, someone with multiple chronic conditions might need to see their primary care physician as well as a specialist or two. They may also need to pay for medications and other treatments. As you look at marketplace plans, you can estimate your costs based on your expected usage to get a good estimate.

Network Coverage

You should also think about which doctors and facilities are in your plan's network. If you choose a cheaper plan, it may have a smaller network of providers. While you can go outside of that network, your plan may not cover the cost of those services. You'll have to pay more than if you went to someone who does accept your plan. Be sure to consider if the network covers everything you need so that you can save money.

The Total Obamacare Cost per Year Can Vary

When you're shopping for insurance using the health insurance marketplace, you have a lot to consider. You should look at premiums, deductibles, and out-of-pocket maximums to help estimate the total Obamacare cost per year. Unfortunately, the number can vary, even between people in your area. Be sure to look at your situation to decide on the plan with the lowest overall cost. Do you qualify for Medicare and want to compare costs to Obamacare plans? Contact us for help.