Can I Have Obamacare and Employer Health Insurance?

Can I Have Obamacare and Employer Health Insurance?

Can i have obamacare and employer insurance

Under Obamacare (also known as Affordable Care Act), most employers must offer health insurance to full-time workers at reasonable cost. Large employers who fail to do so will face penalties.

If your employer-provided coverage falls short of ACA standards, individual coverage can be purchased through a state marketplace (or exchange). You may even qualify for assistance paying your premiums there.

Employer-Based Health Insurance

Employers with 50 full-time equivalent employees or more must offer health insurance or face penalties under the Affordable Care Act (ACA). In addition, this law ensures that employer sponsored plans meet minimum value standards while being accessible and affordable.

Individuals can still make the choice to switch back to employer-sponsored coverage during open enrollment from October through December; however, they won’t qualify for any cost assistance through Marketplace plans.

Employer-sponsored plans that qualify as affordable are defined as costing less than 8% of household income, while any coverage offered that does not fit this description can be evaluated on the Marketplace to see if cost assistance or catastrophic plans might be more suitable – an improvement over pre-ACA days when some employer-sponsored plans had waiting periods on pre-existing conditions.

Individual Health Insurance

Before the Affordable Care Act (ACA, commonly known as Obamacare) became effective in 2014, health insurance was typically only accessible through employer-sponsored plans. Individuals could purchase their own coverage directly from private insurance companies or public or private health exchanges (also called marketplaces). All plans were medically underwritten; applicants with preexisting conditions had to pay higher premiums or risk being rejected altogether.

Individual health insurance plans give individuals greater autonomy in selecting doctors and hospitals of their own choosing, and can also be purchased on federal exchanges at reduced costs. When compared to full-price plans, individual plans often have lower deductibles and copays; additionally they can fill gaps left by loss of coverage from an employer-sponsored plan; furthermore many ACA-compliant policies guarantee issue; this means insurers cannot decline applications due to pre-existing conditions.

Exchanges

Law allows individuals to purchase health insurance directly through state-based marketplaces or health insurance exchanges. Depending on your household income, you may qualify for subsidies to offset some or all of their individual policies costs; some larger employers even subsidize some or all of these expenses for their employees.

The Affordable Care Act (ACA) mandates that large employers offer health coverage meeting certain standards or pay a penalty, and most do. Unfortunately, this doesn’t ensure it will be cost-effective for family members; alternatively if you opt out and purchase health plans on the marketplace using pre-tax dollars from an HSA, which can lower overall healthcare expenses considerably.

Subsidies

Under the Affordable Care Act (ACA), large employers are mandated to offer affordable and comprehensive coverage at an affordable cost or risk incurring penalties.

Your income must fall below certain levels in order to qualify for premium subsidies (also referred to as tax credits). To determine eligibility, use the subsidy calculator by inputting your details.

As household income may change throughout the year as earnings fluctuate, it’s essential that if your employment status changes midyear you inform the exchange so they can recalculate your subsidy accordingly. Furthermore, premium subsidies only apply to marketplace plans; short-term or standalone prescription drug plans do not qualify. Due to this fact many find their employer plan more cost effective.

Loss of Employer-Based Insurance

Most individuals who lose employer-based coverage have several options when losing it: COBRA can extend coverage temporarily; they can switch to an individual plan from the marketplace during a special enrollment period, or another employed family member’s plan; these alternatives may even be cheaper than premiums for an ACA-compliant plan; however, under current rules these options don’t qualify for marketplace subsidies as well.

Cost is a top concern among Americans when it comes to health insurance coverage. Employer-based plans remain the predominant form, but they can be costly and lack much flexibility; individual and marketplace plans have therefore become increasingly popular alternatives.

You May Also Like

About the Author: Raymond Donovan