Obamacare Financial Help Expands in New Jersey

Obamacare Financial Help Expands in New Jersey

New Jersey residents purchasing insurance through the Affordable Care Act marketplace are receiving substantial financial assistance thanks to federal and state actions. A new law (The American Rescue Plan Act) expands premium subsidies available to consumers who make up to 400% of poverty levels.

These subsidies, commonly referred to as a premium tax credit and New Jersey Health Plan Savings subsidy, help lower monthly payments and out-of-pocket costs.

Open Enrollment Period

New Jersey residents can enroll, re-enroll, or change plans through GetCoveredNJ during open enrollment from now until December 15. This site makes it easy to compare health plans and costs while discovering whether you qualify for financial help to lower costs.

Consumers can expect more plan options and higher premiums under Obamacare, also known as the Affordable Care Act, this year; however, costs may begin to subside, likely as a result of lower inflation and expanded federal subsidies which help cover costs.

Special Enrollment Period

New Jersey consumers purchasing health insurance through GetCoveredNJ, their state marketplace, will find more choices, increased premiums and expanded financial aid this year. In addition to federal tax credits, some may qualify for New Jersey Health Plan Savings; this state subsidy assists with costs such as deductibles and co-pays.

New Jersey residents who purchase insurance through the exchange will have five insurers from which to select — AmeriHealth, Horizon Blue Cross Blue Shield of New Jersey, Oscar and WellCare as well as Aetna — as well as unprecedented levels of financial assistance for consumers without qualifying life events – they can still enroll through an experienced navigator in a marketplace plan.

Subsidies

The American Rescue Plan Act, commonly known as ARPA, increased subsidies to reduce marketplace plan premium costs and make premiums more affordable for millions of Americans.

New Jersey residents purchasing coverage through the state-run GetCoveredNJ marketplace can receive three types of financial help when enrolling: premium tax credits, cost-sharing reductions and NJ Health Plan Savings. As this marketplace is open all year long, enrollees can select a plan at any point throughout their enrollment year.

If your income or household size changes throughout the year, be sure to notify GetCoveredNJ immediately so they can assess whether your financial aid eligibility changes accordingly. Otherwise, they may impose repayment of some assistance they provided.

Bronze Plans

Bronze plans offered through New Jersey’s health insurance marketplace generally feature lower monthly premiums than their silver and gold counterparts, making them suitable for individuals expecting moderate medical needs throughout the year, though they require a high deductible payment amount.

Silver plans are typically the optimal choice, balancing monthly premium costs against cost-sharing benefits and being eligible for cost-sharing reduction subsidies to bring its benefits closer to that of a Gold plan.

Catastrophic plans provide low monthly premiums with a high deductible to provide assistance in case of serious illness or injury.

Silver Plans

Silver plans represent an ideal balance in Obamacare costs, offering both monthly premiums and cost-sharing reduction subsidies to those earning below 400% of poverty line. These subsidies help lower deductibles and out-of-pocket maximums on plans, making these options accessible and affordable for individuals in middle class situations.

Bronze plans provide higher out-of-pocket maximums but lower copayments and coinsurance than Silver plans, and individuals can use the marketplace website to find plans based on their needs, income and county of residence. Furthermore, those eligible for premium tax credits will also see which plans qualify for cost-sharing reductions to help select their ideal plan.

Gold Plans

The Affordable Care Act offers several health insurance options through the New Jersey exchange, such as Bronze, Silver and Gold plans. Each plan falls into its respective metal tier depending on your financial circumstances and healthcare needs. Premiums and deductibles should also be carefully considered before making your selection; additionally make sure your preferred providers are included on that particular plan before committing.

During open enrollment, you can use GetCoveredNJ to shop and enroll for plans. You may also qualify for assistance paying your premium or an eligible life event could qualify you to enroll directly through an ACA Marketplace provider.

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About the Author: Raymond Donovan