Alternatives to Affordable Care Act (ACA) Plans: Switch any month of the year!

Are you aware that you do not have to stay locked into your Affordable Care Act (ACA) plan? Not only will the federal government no longer penalize you on your income taxes if you do not have health insurance coverage, but you are allowed to drop your ACA coverage at any time and switch to a less expensive plan at any time during the year. There are plenty of alternatives available to which you can switch.

In August 2018, the Departments of Health and Human Services, Labor, and Treasury issued an expansion to access to short-term insurance coverage. This issuance allows insurers to renew or extend short-term coverage for up to 36 months (rather than the previously allowed three months). As a result, short-term coverage does not have to be “short-term” at all.

Short-term plans are, on average, cheaper than other coverage. Some of these are priced at 20% of the premium for ACA plans. These plans were initially put in place to assist individuals who were experiencing a gap in coverage because they were in between jobs or no longer covered by the parents’ or partner’s plan. They also helped to cover people who missed their opportunity to sign up during the annual open enrollment period. Now, however, these short-term alternatives are available to anyone. They are an excellent option if the ACA premiums do not fit into your budget (yet your income is too high for Medicaid coverage). 

Of these plans, our favorite is a PPO plan that is offered for up to 3 years. There is no open enrollment period, meaning your coverage could begin at any time. The premiums for these plans are 40% of the cost of comparable ACA-compliant coverage. The large PPO network is accepted by most providers. 

If you are interested in finding out if you can save money by switching from your ACA plan to an alternative PPO plan (or one of the other numerous alternatives), contact us today for a free quote. We can answer your questions and do all the legwork for you!

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