How to Save on ACA Health Insurance: Key Tips for Finding Affordable Coverage

Introduction
Finding affordable health insurance can be a challenge, especially when it comes to navigating the Affordable Care Act (ACA) marketplace. With various plans available and different costs to consider, it's important to take a strategic approach to find the best coverage for your needs. In this blog, we’ll provide key tips and strategies for saving money on your ACA health insurance while ensuring you have the coverage you need for you and your family.

1. Understand the Different ACA Health Insurance Plans

The ACA health insurance marketplace offers four types of plans, each with varying levels of coverage and costs. These plans are categorized into metal tiers:

• Bronze: Lowest monthly premiums but higher out-of-pocket costs (deductibles, copayments). Best for healthy individuals who don’t anticipate needing a lot of care.

• Silver: Moderate premiums and out-of-pocket costs. A good choice for people who want a balance between coverage and cost.

• Gold: Higher premiums but lower out-of-pocket costs. Ideal for people who need more frequent medical care.

• Platinum: Highest premiums and the lowest out-of-pocket costs. Best for those who have ongoing healthcare needs and prefer more comprehensive coverage.

How to Save on ACA Health Insurance:
If you are generally healthy and don’t expect many medical expenses, a Bronze plan may be a good choice because it has the lowest monthly premiums. If you expect to need more care, a Silver or Gold plan might be worth the higher premium to keep your out-of-pocket costs lower.

2. Check for Subsidies and Financial Assistance

One of the biggest benefits of ACA health insurance is the availability of subsidies to help reduce the cost of premiums. If your income falls between 100% and 400% of the federal poverty level, you may qualify for premium tax credits (subsidies) that can significantly lower your monthly premium payments.

Additionally, individuals and families with incomes between 100% and 250% of the federal poverty level may qualify for cost-sharing reductions (CSRs), which lower your out-of-pocket expenses such as deductibles, copayments, and coinsurance.

How to Save on ACA Health Insurance:
Be sure to fill out your application for ACA coverage accurately, especially when it comes to your household income. If you qualify, you can receive subsidies that can make your insurance much more affordable. Use the Marketplace’s Subsidy Calculator to see if you qualify for assistance.

3. Shop Around During Open Enrollment

The ACA marketplace has an Open Enrollment Period each year, during which you can shop for plans and make changes to your coverage. This is the best time to compare different plans and see if you can find a better deal or plan that fits your needs.

How to Save on ACA Health Insurance:
Take advantage of the Open Enrollment Period (usually in the fall). This gives you the opportunity to review the plans available in your area, compare premiums, coverage, and out-of-pocket costs, and find the plan that fits your needs and budget.

4. Choose a High-Deductible Plan with an HSA

If you’re generally healthy and don’t expect to need frequent medical care, consider opting for a high-deductible health plan (HDHP). These plans typically come with lower monthly premiums, but you’ll have a higher deductible to meet before your insurance kicks in.

However, the advantage of an HDHP is that you may be eligible to contribute to a Health Savings Account (HSA), which allows you to set aside pre-tax dollars for medical expenses.

How to Save on ACA Health Insurance:
If you're healthy and have low healthcare expenses, an HDHP with an HSA can be a great way to save on premiums and also reduce your taxable income. Use your HSA funds to pay for qualified medical expenses tax-free.

5. Avoiding the Penalty for Not Having Coverage

Under the ACA, there is no longer a federal mandate requiring everyone to have health insurance. However, some states have enacted their own individual mandates, which require residents to maintain health insurance or face a penalty.

How to Save on ACA Health Insurance:
If you live in a state with an individual mandate, make sure to get health insurance during the Open Enrollment Period to avoid any penalties. Even if you live in a state without a mandate, it’s important to have coverage to avoid unexpected medical costs that could be financially devastating.

6. Look for Discounts on Prescription Medications

Prescription drugs can be one of the biggest out-of-pocket costs for people on health insurance. The ACA requires that health insurance plans cover prescription drugs, but the costs can vary depending on your plan and the medications you need.

How to Save on ACA Health Insurance:
Choose a plan that includes drug coverage and check its formulary (list of covered drugs) to ensure that your medications are covered at a reasonable cost. If you take expensive medications, shop around at local pharmacies, use discount programs, or consider using generic medications as they are usually much cheaper than brand-name drugs.

7. Utilize Preventive Services to Save in the Long Run

The ACA requires that many preventive services, such as screenings for diabetes, cancer, and cholesterol, be provided at no cost to you. Regular preventive care helps catch potential health issues early, which can reduce the risk of more expensive medical treatments down the line.

How to Save on ACA Health Insurance:
Take advantage of free preventive services covered by your plan. By staying on top of your health with routine check-ups and screenings, you can avoid major medical issues that might result in high medical bills.

8. Use Telemedicine and Urgent Care for Non-Emergency Health Needs

Many ACA plans now offer coverage for telemedicine services, which allow you to consult with a doctor remotely. Telemedicine can be a more affordable alternative to in-person visits, especially for routine care or non-emergency health issues.

How to Save on ACA Health Insurance:
Instead of visiting the emergency room for non-emergency issues, consider using telemedicine or visiting an urgent care center, which often charges lower fees than emergency rooms.

Conclusion

Finding affordable ACA health insurance requires careful planning and understanding your options. By choosing the right plan, taking advantage of subsidies, using preventive care, and considering high-deductible plans or telemedicine, you can significantly reduce your healthcare costs while ensuring you have the coverage you need.

Remember, the Open Enrollment Period is your best opportunity to shop for coverage. If you need personalized assistance in navigating the ACA marketplace, Betton Benefits is here to help you find the most affordable plan that fits your healthcare needs. Contact us today to get started.