When you’re coming up to open enrollment for Obamacare, you need to know ahead of time how to be fully prepared. A lot of people ask those of us at MBhealth about what they should do to get ready for this event. You need to be thinking about the decisions you need to make starting in November. That way you have 45 days to plan the actions you’re going to take.
The Data to Collect Before Enrolling in Obamacare
Obamacare is a guaranteed issue product, which means that no one will be declined. Your first step is to figure out the price of your premium and the product (insurance plan) you want.
- You’ll need to collect information on your whole household income and the adjusted gross income.
- Next, your filing status. Are you single, married, filing jointly, claiming no dependents, single dependent or more?
This data will determine the amount of subsidy or tax credit that might be available to you under Obamacare and which plan will be best for you.
You Must Anticipate Next Year’s Income Accurately
Every year, your tax subsidy is reconciled at the time you prepare your taxes for that prior calendar year. It’s important that you predict your year’s income accurately for the following year when you enroll in an Obamacare plan. If you predicted an income too high, that’s actually a good thing. You might get an additional credit on your taxes.
If you predicted an income level that is too low, you might owe back some of that tax credit you received. I always tell people I’m enrolling in Obamacare that if they see their income changing, give us a call so we can review their enrollment. Let’s see what effect that change will create, let’s talk that through. Sometimes we may want to adjust their income in the middle of the year. Or the person might start paying more for the premium so that they don’t have to owe as much when the time comes to file their taxes.
But we also don’t necessarily want to do something that could change your benefit very much. That’s why it’s very important to talk with your insurance consultant at this time.
A Mid-Year Review of Obamacare Enrollment Is a Sound Idea
At MBhealth, a mid-year review is encouraged. It’s not required but it is helpful in your planning.
When I enroll someone in a health insurance plan, I want to talk to that person when things are changing. Maybe they have a child, get married, move from state to state. All these things can change your health plan. You need to think about these matters as the year progresses. These changes might help you because they might lower your premium. Maybe there is a Medicaid or state program that you can now take advantage of.
Maybe you start off the year with a job and then lose it. By contacting your insurance agent at that point, you can adjust your income in the middle of the year and save money on your premium.
Working with a Knowledgeable Person Can Save You Money on Obamacare
Obamacare is a very fluid product. Many people don’t realize that they can make adjustments as the year progresses. If you want help navigating your Obamacare enrollment, reach out to us at MBhealth. This is what we do, day in and day out. We can help you find the best plan at the best price for you or your family. Call us at 314-544-5400.
