We help you to decipher common health insurance industry terms.
It’s almost time to purchase a new health insurance plan for 2018. Depending on which state you live in, there will be many options for you to consider. Open enrollment begins on November 1, 2017, and will run through until January 31st, 2018. However, in order to have health coverage in place on January 1, 2018, you must either renew the plan that you currently have or select a different one in which to enroll December 15, 2017. Keep these important dates in mind to allow enough time to select coverage!
Understanding the most critical terms will help you discern what is most important for you and your family when shopping for a health insurance plan. To help you understand the common terminology, check out this glossary below:
Deductible
This is how much you have to pay out of pocket before your health insurance kicks in. Typically, the higher the deductible limit, the lower your monthly costs. If you are doing this to save money, it’s important to note that your deductible must be paid in full before insurance can help, so if you’ve set yours to $10,000, you will have a high out of pocket cost.
Pharmacy Benefits
If you take prescription drugs, review what your health insurance plan will cover. Some have a separate deductible for prescription drugs, others do not.
Penalty
If you don’t carry health insurance for three months or more, you are subject to a tax penalty that is payable to the IRS when you pay your taxes. In 2017, anyone who is not exempt from this provision will have to pay $695 per adult per household, and $347.50 per child, or 2.5 percent of total household income, whichever is greater.
Subsidy
Many Americans quality for cost assistance from the federal government when they apply for a health insurance plan. The subsides, also known as Premium Tax Credits, are based on your income. There are two kinds of subsidies available to those eligible: one that lowers your monthly cost, and the other that reduces the size of your deductible. Even if you don’t believe you are eligible for a tax subsidy on your health insurance quote, run a quote to see if you qualify for any savings.
Here at Donald Weiss Insurance Services, we strive to provide insurance services that meet your needs and budget. Our agents represent multiple carriers and can pair you to the coverage that you need to protect yourself and those you love. It’s never too early to get prepared for applying for coverage! To learn more about your insurance options, contact us today!