If you or your family does not qualify for a government Tax Credit, an Off-Exchange plan may be a better option for you.
There are some very complex situations and/or biases with the new ACA law and in some cases, the plans which are purchased through the Exchange/Marketplace. We are not here to say whether or not these biases are warranted or not, but at the Insurance Hub, we educate our clients to the facts.
Off-Exchange plans only allow the members a 30 day grace period to make their premium payments or the carrier has to right to cancel their insurance. On the other hand, On-Exchange plans by law are required to offer a 90 day grace period before their plan can be cancelled. Under this law it is the responsibility of the insurance carrier to cover all associated costs for the first 30 days of the plan, but then the doctors, hospital and other facilities are responsible for any charges after the 30 day period up to the 90 days.
Since the doctors, hospital and other facilities are responsible these charges and have no way to determine whether or not the person will make up any back premium payments, it is easier for them to say they do not accept any Qualified Health Plans (QHP)/Marketplace/On-Exchange or Obamacare plans.
This being the case, individuals and families are much better off buying Off-Exchange plans if they can afford purchasing them without a tax credit.
No Tax Credit but more Privacy
When purchasing a health insurance plan off-exchange, you don’t have to give out a lot of privacy information. When you purchase on-exchange, you basically have to give away so much information personal information to the government it’s like giving them your first born child to get the tax credit. I’m sure that they will keep it safe and we have nothing to worry about, but if you don’t have to give out personal information, why do it?
Health Plans are Different but the Same
All plans whether they are purchased On or Off Exchange must all offer Preventative Services (Wellness) at $0 cost and are described by Metal Levels.
- Catastrophic Plans (Age 30 and Under Only)
- Bronze Plans (60/40% Coinsurance, Highest Deductibles)
- Silver Plans (70/30% Coinsurance, Somewhat High Deductibles)
- Gold Plans (80/20% Coinsurance, Moderate Deductibles)
- Platinum Plans (90/10% Coinsurance, Lowest Deductibles)
Regardless of what plan you choose, we strongly suggest that everyone should use a professional insurance agent. An agent can help guide you through this process and explain the pros and cons of different plans which could save you a ton of money.