It is important for you take some time out of your busy schedule and review your current health insurance coverage. If you have a plan through your employer, you need to verify it will meet all 10 of the Essential Health Benefits as required under the Affordable Care Act. In the event your employee sponsored plan lacks adequate coverage, you are able to switch plans. Additionally, you need to compare the cost of your plan to your income. If you are paying more than 9.5 percent of your earnings for health insurance, you have the option to choose a different plan through the California Health Benefit Exchange.
The California Health Benefit Exchange is a way for you to easily shop and compare rates between state sponsored and private insurance coverage plans. Depending upon your income levels, number of dependents, and marital status, you may qualify for tax credits from the federal government. These credits are able to be applied directly to your insurance premiums when obtaining a plan through the Exchange. Any amount left due, after your credits are applied, is the amount you are required to pay out of pocket for your insurance premiums.
For example, a family of four, with two children under the age of 21, with an annual household income of $40,000, selects a Silver Plan through the California Health Benefit Exchange. The premium for this plan is approximately $855, before any tax credits are applied. However, the estimated tax credit amount is $691, which is subtracted from the full premium price. The approximate out of pocket cost is $164 for the Sliver Plan premium after tax credits are applied.