3 Tips on Saving Money on Obamacare in 2016

It won’t be long before the marketplace exchanges (known as Obamacare) will be opened to the public.

It’s important to note that not having health insurance will result in penalties – that is set to increase this coming year too. If that’s not enough, premium costs are also likely to increase as well.

Here are 3 tips on saving money on Obamacare in 2016:

1: Check if you qualify for subsidies

Another question to ask is whether you qualify for subsidies. There are two types of subsidies that are offered under Obamacare with the first being Advanced Premium Tax Credit while the second being costs-sharing reductions. The former helps to reduce your premium payments while the latter helps you to reduce copays, coinsurances and deductibles. To avail the benefit of the former, your income should fall between 100 to 400 percent of the federal poverty line (FPL) while for the latter, it would have to be between 100 to 250 percent of FPL.

 2: Obtain a Gold or Platinum plan if you require medical care

When consumers buy bronze or silver plans, insurers are happy because they won’t have to pay a lot out of pocket. This is because the deductibles are higher for consumers even if the premiums are lower. Alternatively, gold and platinum plans have higher premiums but lower deductibles. But they work ideally for chronic or terminal conditions that would probably cost a lot. There’s no doubt that insurers will spend much more for these plans too.

3: Understand your exemptions

It’s important to know whether you qualify for an exemption. For starters, if you do not want to purchase health insurance or live in a state where subsidies aren’t being extended to you, then you may qualify. Another reason might be due to income. If the cheapest plan you purchase is more than 8.05% of your income, then you are exempted too. Apart from this, filing for bankruptcy or even being evicted can exempt you from a penalty.