The Affordable Care Act, commonly known as “Obamacare,” was passed with the goal of providing all Americans with affordable health insurance coverage. To do this, the law established health insurance marketplaces or “exchanges.”
The exchanges also offer subsidies to lower income individuals and families to cover their health plan expenses. These are known as cost sharing reductions or advance premium tax credits.
What is HealthSource RI?
HealthSource RI is the state’s health insurance marketplace, offering individuals and small businesses access to plans at federally subsidized rates. Additionally, it allows people to sign up for Medicaid – a joint federal-state program that assists those with limited income or resources pay for healthcare expenses.
The site provides tools to help users compare plans and locate in-network doctors. Furthermore, live web chat representatives and virtual events provide specialists with answers to queries.
Navigators and application counselors are available to guide you through each step of the process. They can estimate your income, determine if you qualify for subsidies, and explain which documents are necessary.
Navigating HealthSource RI with a navigator can be more efficient than trying to do it alone, and is especially beneficial for those new to health insurance or having difficulty understanding what information is needed. You can search for an HSRI navigator or application counselor near you by going online, calling 211 to book an appointment in your community, or searching for navigators on LinkedIn.
Are there different types of health insurance plans under Obamacare?
Under Obamacare, many health insurance plans are available both through and outside the marketplace. On and off government-run exchanges, plans may differ in their amount of premium subsidies offered as well as other features.
Depending on your state and the plan you select, tax credits may be available to help pay for health coverage. These credits reduce premiums and make out-of-pocket costs much more manageable.
Another option is to purchase a plan with a higher deductible and lower premium, known as catastrophic plans. Unfortunately, these are only available to people under 30 or those who meet other special requirements.
Qualified Health Plan (QHP) options are available through the health insurance marketplace in four tiers – Bronze, Silver, Gold and Platinum. These tiers are also referred to as “metal plans.” Each metal level offers better deductibles, copays and coinsurance than its predecessor.
Are there tax credits available to help pay for health insurance?
Premium tax credits and cost-sharing reductions help lower the cost of health insurance for eligible individuals and families. They can be applied directly to your monthly premium, or you may get reimbursed through a tax refund when filing your taxes.
Each year, you must report your income to the Marketplace in order to receive an updated estimate of your credit amount. Your credit may be higher or lower depending on factors such as household income and size.
Premium tax credits are available to those earning between 100% and 400% of the federal poverty level, although those making more can only contribute up to 8.5% of their income towards the benchmark plan in their county–usually the most affordable silver plan).
The Advance Premium Tax Credit program sends advance payments directly to the insurer each month, and it credits those advances towards your insurance costs. This helps reduce out-of-pocket expenses each month so you only pay the difference between estimated discounts and actual costs of coverage.
What is the penalty for not having health insurance?
The Affordable Care Act (ACA) required everyone to have health insurance or face a tax penalty at tax time. Furthermore, subsidies were available to make coverage more affordable for those with lower incomes.
The individual mandate, otherwise known as the “individual mandate,” was an unpopular part of the Affordable Care Act but essential in encouraging people to secure year-round coverage.
Studies have examined how the individual mandate has affected enrollment and spending patterns. Some findings revealed that enrollees responded more to premium subsidies than to penalties associated with the individual mandate, while others revealed enrollment declines as penalty size increased.
The penalties for failing to file your taxes depend on your income and family size, with penalties capped at the average bronze premiums in your state’s exchange. Some states offer exemptions for individuals who do not qualify for a tax credit or cannot afford plans through the exchange; these may include low-income families with dependent children, small businesses, and people with limited benefit plans.
