which insurance to choose

When the Affordable Care Act was first passed, it included a health insurance mandate; if you could afford adequate health insurance (“minimum essential coverage”) throughout the year but chose not to purchase it, you were required to pay a penalty fee.28 This fee was usually charged when it came time to file that year’s taxes and was imposed on everyone in your household who did not meet the minimum healthcare requirements. Beginning with the 2019 plan year, however, this penalty—called the Shared Responsibility Payment—has been reversed on a federal level. You are no longer responsible for this fee if you choose not to carry minimum coverage, and no exemption is necessary to avoid the penalty. However, there are some states that still have their own health insurance coverage requirements. Be sure to check the laws in your state of residence to see what level of insurance you’re required to carry and what penalties, if any, apply for not meeting these minimum standards.

As with any insurance product, there are countless personal factors that go into calculating your cost for coverage. When it comes to health insurance premiums, you also have to take into account the difference between employer-sponsored plans and those purchased on the marketplace, the difference between coverage for a single person and that for a family, and whether your income qualifies you for a tax credit on your marketplace plan premiums. There are a few factors that go into calculating your health insurance cost across the board, though. These include your age, gender, location, personal and family health history, and whether or not you’re a smoker. For instance, whether you’re buying an employer-sponsored plan or one on the ACA marketplace, you can expect your premiums to go up by as much as 50% if you smoke or vape.29 When you consider that annual healthcare premiums are already an average of about $6,896 for single folks and $19,616 for families, an extra 50% could

Buying health insurance can be an arduous and confusing process, especially when there are so many options and costs to consider. There are a few questions to ask yourself if you want to make the search a bit easier. They include:

Does my employer offer coverage or will I need to shop the Healthcare Marketplace? A workplace plan, if offered, may be more affordable than buying a private plan.How often do I anticipate using my coverage? If you only see the doctor for routine/preventative care, you’ll need a very different plan than someone who has a chronic condition or a child with special needs.What sort of costs can I expect to encounter? You typically have two options to choose from: a high deductible or high(er) premiums. If you don’t expect to use your coverage much—and can afford the out-of-pocket cost if you do wind up needing serious care—a plan with a high deductible can save you money all year long. On the other hand, if you and your family are at the doctor’s office…