On Exhange Or Off Exhange?
As brokers, we can help you obtain coverage through the Health Marketplace (On Exchange) and determine if you qualify for lower premiums and /or cost sharing based on your income and household size. We will help you determine the best plan for your situation as well as to check your doctors and prescription drugs to make sure they are covered.
We can also submit applications directly to health insurance companies (Off Exchange) and obtain coverage for you outside the Marketplace. You do not need to use the Marketplace to obtain health coverage. If you know your income is too high for premium assistance or you prefer to avoid the marketplace, we will work directly with the insurance company.
Affordable Care Act Plans
Health Plans are typically designed as one of the following types of policies:
- Platinum Plans – pay 90% of most medical expenses
- Gold Plans – pay 80% of most medical expenses
- Silver Plans – pay 70% of most medical expenses
- Bronze Plans – pay 60% of most medical expenses
Penalties for not having Minimal Essential Coverage
Penalties for not having Minimal Essential Coverage have been eliminated in the Tax Act of 2017.
Health Savings Accounts
These plans combines a High Deductible Health Plan with a Tax Deductible Savings Account. Your health plan will have a considerably lower premium due to the higher deductible.
By design, the government permits you to contribute money to a Health Savings Account to pay towards your out of pocket medical expenses. The contributions to this H.S.A are tax deductible similar to an IRA.
There is no current income tax on interest earned and withdrawals used to pay qualified medical expenses are tax free. If you don’t use the money in the H.S.A. it will remain in your account for future years so you can build up a substantial reserve in a Health Savings Account.
You can use the money in your H.S.A. for vision, dental, orthodontia, hearing aids, and other expenses typically not covered by a health plan. An H.S.A. can provide significant tax savings on an annual basis.
We can help you determine if a Health Savings Plan is best for you. Typically, people in good health and high income earners are good candidates for an H.S.A.