Some things to consider:
While the Affordable Health Care Act created some basic standards applicable in every state (such as insurance policies can’t red line out preexisting conditions), the insurance industry is still largely regulated independently by each state, and federal programs such as Medicaid (not Medicare) are administered independently by each state. What companies are allowed to operate, what policies are available, what premium costs are can vary widely, depending on where you live.
Nobody is forced to carry health insurance, that is a myth. There used to be a federal tax penalty for those who didn’t have health insurance but that was eliminated in 2019. Some states still impose a penalty but not the federal government. Under the old rule nobody was required to pay more than a certain percentage of their income (8.5% I believe) for health insurance, and if one couldn’t find a policy for less than that there was no tax penalty. From 1999 until I went on full Medicare (Parts A and B) my health insurance was provided by my employer (with a premium co-pay). Before that I paid for my own insurance, but the rates weren’t that bad and I was “grandfathered” on an old policy that was no longer offered for sale. I’ve never had to shop on the exchange or open market, but my understanding is that often premium subsidies are available depending on one’s income. This may depend on which state one lives in.
Regardless of its faults California has a reputation for having generous safety net programs and you should look into what subsidized health plans might be available for families of modest income.
If one is on a “Consumer Directed Health Plan” (i.e., with a higher deductible) they may be able have a Health Savings Account into which one can make tax exempt deposits. At my work I had a choice of choosing a plan with a $1,800 deductible (versus a standard plan with a $250 deductible) and a lower premium co-pay and was eligible to have a HSA. I could pay medical and dental expenses, and for certain over the counter products, out of this savings account. Once I went on Medicare Part A (required at age 65) I was no longer allowed to make additional deposits to the HSA but I got to finish using what was already there. A HSA (not to be confused with Flexible Spending Accounts, or FSA) perhaps can be a good asset in conjunction with a high deductible plan.
I agree with Ladislaus that those who refuse to carry health insurance or make no effort to find plans they can afford, if they should have a medical emergency and can’t pay for it, just force up the costs for the rest of us.
Topic: Health Insurance Advice (Read 10622 times)