We’re just a month away from the launch of 2015’s open enrollment period for Obamacare plans, and here’s another reminder that it’s smart to shop around, again, for plans on the marketplace whether that be Healthcare.gov or a state exchange. Why? So you can save money, primarily.
PriceWaterhouseCooper’s Healthcare Institute found that on average, premiums for individual insurance plans are expected to increase a relatively modest 6 percent, but there are wide variations and some markets are seeing decreases, in part thanks to competition from new plans.
There’s good reason to not renew your A.C.A. health plan blindly, said Larry Levitt, senior vice president at the Kaiser Family Foundation. For starters, he said, if you auto-renew, you’ll most likely be assigned the same tax credit as you had for 2014. But if your income has increased, your credit may be too large — and you could end up owing the government money, when the numbers are reconciled at tax time. Consumers are supposed to report changes in income during the course of the year, he said, but it’s likely that many have not. So by re-enrolling and updating details about income, you’ll help make sure the credit is properly adjusted.
Also, because of a quirk in the way the A.C.A. calculates the tax credits, some consumers who stick with their same plan actually could end up paying more—even if their original plan doesn’t raise its rates.
Either income changes on the part of the consumer, or the addition of new, cheaper plans on the market could mess up a customer’s subsidy, meaning they’ll be surprised with a bigger tax bill for 2015. That’s because subsidies are based on a benchmark plan in each market, and that benchmark plan could very well be replaced with a new, cheaper one for 2015. Which means the subsidy level will shrink, and the difference will have to be made up by customers on their tax bill. But, beyond that, with all the new insurers coming into the market it just makes sense for people to shop again to see whether they might be able to get a better deal.
Help elect more and better Democrats. Please chip in $3 to Daily Kos’ endorsed candidates.
Voting by mail is convenient, easy, and defeats the best of the GOP’s voter suppression efforts. Sign up here to check eligibility and vote by mail, then get your friends, family, and coworkers to sign up as well.
Here’s what to know: enrollment will be open from November 15 until Feburary 15, 2015. In order to be covered as of January 1, 2015, you have to enroll by December 15. There likely won’t be the kinds of extensions granted for 2015 as there were this year, because the website is going to function much better this time (though that’s no reason to wait until the last minute to shop). One critical thing to keep in mind this year—particularly in making that December 15 deadline—is that the penalty for not carrying insurance will increase from $90 in 2014 to $325 per adult in 2015, or 2 percent of your yearly income, whichever is greater.
