Choosing an ACA health insurance plan requires more than comparing premiums. Changes to your household, income, tax credits, healthcare providers, and prescriptions can all affect which plan meets your needs. Preparing this information before open enrollment can help you and your agent make the right coverage decisions for the coming year.
Review Life Changes That May Affect Your ACA Coverage
A lot can happen over the course of a year. Before meeting with your insurance agent, make a note of any significant changes in your life, including:
- Receiving a raise
- Losing or changing your job
- Getting married or divorced
- Having a baby
These changes may affect your household income and the amount of financial assistance you qualify to receive.
Estimate Your Household Income to Determine ACA Financial Assistance
Your expected income plays an important role in determining how much financial assistance you may receive toward your ACA premium.
For example, getting married or having a baby may allow your household to qualify for more assistance even if your income stays the same. If your spouse begins working and your household income increases, your subsidy may decrease and raise the amount you pay each month.
Estimating your income as accurately as possible helps your agent determine which plans and premiums to consider.
Understand How Income Changes Affect Your ACA Tax Credit
The tax credit applied to your monthly premium is based on the income you estimate during open enrollment. If you received a $400 monthly credit this year but expect your income to increase, you may qualify for only $200 per month next year.
When you file your tax return, the amount of financial assistance you received is reconciled with your actual income. Some people refer to this as a penalty, but it is actually an adjustment that matches your tax credit to your actual income for the year. Discussing expected changes with your agent can help reduce the amount you may have to pay back later.
Review Your Healthcare Needs During ACA Open Enrollment
Open enrollment begins November 1 and provides an opportunity to review what has changed during the past year. Before choosing your plan, consider whether you:
- Started taking a new medication
- Began seeing a new doctor
- Developed a new health concern
- Anticipated needing medical care within the next six months
Sharing this information with your agent can help you choose the right plan, provider network, and premium for you or your family.
Prepare for ACA Open Enrollment With an MBhealth Agent
An MBhealth agent can review your life changes, expected income, tax credits, and healthcare needs to help you select coverage for the coming year. To schedule an appointment, call MBhealth at (314) 544-5400 or visit mbhealth.com.
