Planning for 2014 and Beyond
So what should you do? There are several options
1. Keep what you have. There may be reasons to keep the health insurance coverage that you currently have for as long as possible. For example, if a person or company has a grandfathered plan, in many cases it may make sense to stay where you are after analyzing rates, benefits, and options with your advisor.
2. Buy insurance through the Federally Facilitated Marketplace (FFM). Remember, the only reason to go through the Federal Exchange is to get a tax subsidy. That is because the Exchange is the only place that subsidy is available. If you don’t qualify for a tax subsidy, don’t waste your time with the government website and the current enrollment difficulties.
3. Buy insurance privately. If you don’t qualify for a large tax subsidy, you will probably opt to buy insurance privately. There will likely be more choices and better plans available in the private market than there are on the FFM. Many are under the impression that insurance next year MUST be bought through the government Marketplace—this is not true. There will still be a viable and vibrant private market for health insurance, and the private plans will offer the same “essential health benefits” as those through the Marketplace. In addition, some are concerned about the government maintaining privacy of their sensitive medical and financial information they will be required to provide to Marketplace and government officials.
While the Affordable Care Act is evolving on a daily basis and there are still political and legal challenges to the law, it’s not likely to go away in the next couple of years.
The important thing is to review your health insurance needs. It is vital to evaluate your particular situation with an insurance advisor to make sure you understand what your options are for health insurance, now and in the future.
David A. Dorn, CLU, ChFC and his daughter Kristin Dorn offer health, life and disability insurance solutions through Dorn Agency, Inc. They have over 45 years combined experience. Please visit www.dornagency.com for more information on our services and how to schedule a complimentary review of your insurance needs.
