Your financial stability and well-being significantly depend on your health insurance plan of choice. However, despite the weight this decision carries, it’s not easy to evaluate plans, given the available options and the varying determining factors.
Because insurance companies tweak old plans and formulate new policies every year, act with caution when scouring the health insurance marketplace for the best deals. To score unbeatable savings, you’ll need to know how to differentiate between non-qualified and qualified health insurance plans. For more information on how to distinguish the two, read on.
Non-Qualified Vs. Qualified Health Plans
Qualified health insurance plans refer to those plans that comply with all outlined Affordable Care Act provisions. In contrast, non-qualified health insurance plans are significantly cheaper, as they don’t comply with one or several of the set ACA requirements.
Are you interested in learning more? Click here for more insider knowledge of qualified health plans. Unsurprisingly, the right plan for you will depend on your health status and budget.
For example, the Affordable Care Act features subsidy programs that help low- income/disadvantaged households access ACA-compliant plans. However, only individuals in a certain income bracket qualify for these subsidies, which primarily depends on the household size.
Unfortunately, many people can’t afford a comprehensive health insurance plan due to their precarious financial situations. Similarly, many potential beneficiaries fail to meet the requirements necessary to get a federal subsidy because they earn a higher annual income than permitted.
Such individuals may face difficulties, as living without health insurance poses a considerable risk, especially in the age of Covid-19. Access to covid testing and healthcare coverage for these tests is essential these days.
Sadly, it isn’t always easy to find a budget-friendly plan on the market, meaning many families will opt out of health insurance coverage. Fortunately, non-qualified plans are an excellent option because of their lower premiums.
Buying A Qualified Health Insurance Plan
All the healthcare plans sourced from the government marketplace (state and federal) are qualified health insurance plans. When you need one, visit the appropriate website. As an alternative, you can also find the right plan for you from a certified web broker.
Before purchase, acknowledge that each tier differs based on the medical expenses covered once you meet your deductibles. However, all qualified health insurance plans should include the essential benefits necessary to lead a healthy lifestyle. Regardless of the level you choose, you can rest assured knowing you’ll receive the same comprehensive health insurance coverage.
With a qualified health insurance plan, you can also qualify for tax credits, which assist with premium payments and cost-sharing benefits if you purchase a silver-level plan. However, you can only capitalize on these benefits if you buy your plan from a health insurance marketplace or a certified web broker.
Before contacting a certified web broker, remember that certain information is required to enroll for a qualified health insurance plan from a state or federal market. Such details include your name, email address, address, birthday, social security number, citizenship status, household size, and income—if you need cost-sharing reductions or premium subsidies. You’ll also need to provide insurance details to qualify for an employer-sponsored family health insurance plan, even if you declined it or haven’t enrolled.
If you’re 30 years and above and planning to buy a catastrophic health insurance plan, you’ll require a hardship exemption notice.
Purchasing A Non-Qualified Health Insurance Plan
You can access non-qualified health plans in various forms, including short-term health insurance, indemnity insurance plans, medical discount plans, supplemental accident insurance, and workers’ compensation. Short-term medical insurance has a limited duration, usually 30 to 364 days, with a maximum of three years guaranteed renewal in specific states. These health insurance options are ideal for people who require temporary coverage as they look for a long- term option.
Short-term insurance is ideal for people between jobs, spouses waiting for their partner’s insurance to kick in, those ineligible for their parent’s coverage, or individuals in need of a cheaper alternative to an ACA-sponsored plan.
Indemnity insurance, a form of non-qualified health insurance, helps beneficiaries tackle unforeseen emergencies and unexpected healthcare expenses. Unlike short-term coverage, indemnity plans don’t have expiry dates. Indemnity insurance may be suitable if you don’t want to commit to a single primary physician, prefer to pay lower monthly premiums, you or live in an area without certain health specialists.
Final Thoughts On Health Insurance
Although non-qualified health plans can help you save a substantial sum of money, remember that they aren’t ideal for every household due to potential coverage gaps. Therefore, before acquiring one, ensure that you assess your needs and determine if you qualify for relevant health insurance subsidies.
If you require substance-use disorder treatment services, have pre-existing conditions like diabetes, or need maternal care, a non-qualified health plan may not be ideal.
Qualified and non-qualified health plans have their fair share of strengths and weaknesses, so you must weigh these pros and cons before signing up for a non-qualified or qualified health insurance plan. Explore every option and utilize the available resources to pinpoint the appropriate family or individual healthcare plan for you.
