Health insurance is a necessity, but finding a suitable insurance plan that offers the coverage you need, and that is kind to your pocketbook, can be quite a hassle. Let’s take a look at what to know about affordable insurance and where to find an affordable health insurance plan.
An affordable healthcare plan provides you with the coverage you need at a price that fits within your budget. The specific amount will vary from household to household. Under the Affordable Care Act, affordable plans are those that cost less than 9.61% of a person’s household income for a self-only plan (a plan that doesn’t cover spouse or family). So, for a person earning $3,000 per month, the IRS estimates an insurance plan with a premium of $288.30 or less per month would be affordable.
Most people look at the monthly premium as a basic judge of affordability, but the overall affordability of a plan is influenced by several factors:
- Income. How much you make doesn’t change what your premium will be, but it does impact how much coverage you can afford.
- Family Size. In general, coverage for a family is more expensive than for an individual.
- Premiums. The premium changes based on what the deductible is, what services are covered, where you live, and many other factors.
- Out-of-pocket costs. The deductible (what you pay before insurance kicks in), coinsurance, and copays all impact overall cost and affordability.
- Coverages. The premium for a plan changes based on what services are covered. Not having services you need covered can get expensive fast.
It’s important to remember that the premium you pay every month is only a part of the equation–the cheapest health insurance isn’t necessarily the best or most affordable health insurance plan.