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What Is the Cost of Obamacare Insurance and How to Reduce It?

Explore the costs of Obamacare insurance and learn strategies to reduce your premiums effectively.

DOPPCALL

DOPPCALL Editor

Super
June 15, 2024
What Is the Cost of Obamacare Insurance and How to Reduce It?
What Is the Cost of Obamacare Insurance and How to Reduce It?
DOPPCALL

DOPPCALL Editor

Super
June 15, 2024

What Is the Cost of Obamacare Insurance and How to Reduce It?

Explore the costs of Obamacare insurance and learn strategies to reduce your premiums effectively.

Obamacare Insurance, or the Affordable Care Act, is essentially a marketplace for health insurance that lets Americans compare their policies and their costs. They can also assess whether they qualify for financial assistance for the plan. 

Nonetheless, the cost of Obamacare insurance is a complex and concerning issue as it depends on the states, metal-tier plans, and people's ages. So, what is the cost of Obamacare insurance? Also, what are the ways to reduce the cost of premiums and enjoy maximum benefits?

The average cost of Obamacare insurance is around $937 and $469 for a couple of 40 and individuals, respectively, before subsidies. It also depends on the different packages. According to Value Penguin, the average cost of the silver plan for ACA is $584 monthly. 

If you plan to enroll in Obamacare insurance, it's time to review the costs for the different plan types and facilities you will get. We will discuss the cost and related factors to offer you a true insight into the ACA plans. 

What Is the Cost of Obamacare Insurance?

Although Obamacare insurance costs depend on your age, location, subsidies, and insurance partner, on average, it costs you $584 monthly for the silver package in 2024. 

It’s the premium you pay monthly to get the insurance benefits whenever you need it. The cost is calculated based on information from the Medicare & Medicaid Services (CMS) centers. 

As CNN reported, it is almost 4% higher than the average cost of the ACA in 2023. The rise in insurance premiums in 2024 is surprising since it has been declining consecutively for the last four years. Insurance experts say that the rise in Obamacare insurance costs will affect millions of Americans. 

The cost increment happened as Biden and his administration reduced subsidies on short-term health insurance coverage plans and their timeframes. Biden's crackdown on health insurance policies hit the marketplace for Obamacare hard. 


Cost of the Obamacare Insurance According to Age-groups:

The ACA depends largely on the age of the people. The older an insurance enroller is, the more premium he has to pay. The cost is around $277 for children between 0-14. For children up to 18, the premium is $326 monthly. 

On the other hand, individuals aged 30 would pay $412 for the standard silver package under the Affordable Care Act before subsidies. As the age increases, the cost keeps increasing for all the plan types under Obamacare insurance. 

Average Monthly Premiums 

Age Limit 

$277

0-14 

$326

15-18 

$365

Adults aged 21 

$412

Adults aged 30 

$469

Adults aged 40 

$655

Adults aged 50 

Cost of the Obamacare Insurance According to Child Numbers and Couples:

Obamacare insurance cost further depends on the number of children a couple has and their age groups. For couples aged 21, the standard silver package starts at $730. It can go up to $1987 per month for a couple of 60 without kids. 

Conversely, a couple (age limit 21) with a kid would pay $1007 monthly. If the couple has two kids, they would pay $1284 per month. The insurance cost largely depends on the couple's age and the number of kids they have. 

Average Monthly Premiums 

Age of the Couple and Number of the Children 

$730 

Age limit 21 (No children 

$834

Age limit 30 (No children

$937

Age limit 40 (No children

$1007

Couple with 1 kid (Age limit 21) 

$1110

Couple with 1 kid (Age limit 30)

$1,284

Couple with 2-kids (Age limit 21)

$1,387

Couple with 2-kids (Age limit 30)

As you see, age and number of kids are directly linked to Obamacare insurance costs. However, not all states calculate the premiums similarly for all age groups. Alabama, Minnesota, Oregon, Utah, Mississippi, and Massachusetts calculate the age groups differently. 

Cost of the Obamacare Insurance According to Plan Tier (Metal-tier)

Currently, the Obamacare Insurance marketplace has five different plan tiers, aka tiers. It starts with the catastrophic plan, with an average monthly cost of $335 before it subsides for a 40-year-old individual. The silver plan is the standard one that most Americans choose, costing $584 monthly. 

Plan Type 

Average Monthly Premium Costs 

Catastrophic 

$335

Bronze 

$462

Silver 

$584

Gold 

$641

Premium 

$813

According to the table, the higher the premium, the higher the cost. This is crucial since a higher premium means you pay less for the deductibles. For example, if your premium is $584 for the silver package and your covered medical services are $1000, you only pay $412 upfront. 

Cost of the Obamacare Insurance According to Different States

Different states calculate the premiums for the ACA distinctively. So, depending on your state, the average insurance premium will vary too. For instance, in California, the average cost of Obamacare insurance is $600, and &948 in Alaska for an individual aged 40. 

States

Monthly Cost 

Alabama 

$584 

Virginia 

$409 

Arizona 

$517 

Indiana 

$436 

Washington D.C. 

$538

Alaska 

$948 

You can check for your specific insurance coverage and costs at Healthcare.gov. 

Understanding Subsidies and the 400% of the Federal Poverty Level

The Federal Poverty Level (FPL) is crucial to know if you qualify for Obamacare Insurance. Typically, anyone earning at least 100% of the FPL and not more than 400% of it is eligible for the insurance plans. Plus, if you wish to lower your cost of Obamacare insurance, you better know about the Federal Poverty Lover (FPL). 

The 400% Federal Poverty Level starts at $54316 for an individual, and with it, you will qualify for the premium tax credits and subsidies. 

It will help you lower the premiums and costs considerably. Subsidies will also reduce the premium and deductibles for your healthcare insurance if you qualify for the FPL. 

According to 2023, the Federal Poverty Level starts at $14,580 for one individual and $19,720 for two people in the household. If the household members are 3 or 4, the Federal Poverty Level will be $24,860 and $30000, respectively. 

However, in 2024, the minimum earning for the Federal Poverty Level increased to $15060 for individual householders. Therefore, you should assess if your household income qualifies for the Federal Poverty Level. 

The marketplace will offer different subsidy levels up to $400 for the FPL. For example, you can get a 100% subsidy and enjoy Obamacare insurance for free if your individual household income is between $14,580 and $21,870. 

Qualification requirements for the FPS:

“It's 100% to 150% of the minimum Federal Poverty Line for individuals. You can assess the household income for all your family members and see if it qualifies for the subsidy level.”

Understanding Deductibles and Copays for Obamacare Insurance

The average cost for Obamacare insurance doesn't depend only on the premiums you pay each month. It further depends on the deductibles and copays during your covered health insurance. Deductibles refer to the amount you pay during the covered health insurance. The higher the premiums are, the less your deductibles will be. 

Deductibles 

Obamacare Insurance Tiers 

40%

Bronze 

30%

Silver 

20%

Gold 

10%

Platinum 

It suggests that if you enroll in the silver plan of Obamacare insurance and your cost for the healthcare service is $1000, you have to pay $400 upfront. Then, the insurance company will pay the rest of the amount. On the other hand, for the platinum plan, you will pay $200 upfront for the covered healthcare services. 

So, what's the outcome?

Higher premium and metal-tier initially appear to be costlier. However, higher metal-tiers will considerably reduce your payments for services during the covered healthcare services. Thus, people over 50 with different sicknesses should choose higher metal tiers. 

Besides deductibles, you must understand copays and the limit for out-of-pocket costs. A copay is applicable when you reach the annual deductible limit. Out-of-pocket is the highest amount you must pay for healthcare services. 

So, here’s a quick suggestion:

"Choose a High-Deductible Health Plan (HDHP) to save considerably on your premiums. HDPSs have high deductibles that start at $1500 for one person annually."

Tips to Reduce Your Cost on Deductibles

The best thing is that you can further reduce your deductible payments to lower your Obamacare Insurance costs. Try to qualify and opt for zero-cost sharing plans. You can also choose a cost-sharing reduction plan. 

Next up, access the following preventive services:

  • Well visits 

  • Certain screenings

  • Vaccinations

When you access these services, you need not pay the deductibles separately. Additionally, you can opt for the HAS plans. 

Reduce Your Obamacare Insurance Cost with the Health Savings Account (HAS)

With the health savings account, you can lower your premiums and deductibles on the Affordable Care Act (ACA). It is tax-free for your future healthcare services and their upfront costs. 

When you choose the Health Savings Account (HAS) plan, you can carry forward the unused amount from the previous year to the next year. The HAS is capped at $3850 and $7750 for individual and family packages. This will lower your deductible cost for the coming year. 

Steps to Estimate Your Obamacare Insurance Cost

When you opt for Obamacare insurance, you can easily estimate the cost and better prepare for the upfront costs and premiums. 

  • First, enter the different information about you in the box. It includes the ZIP code of your location, household income, and members. 

  • Click on the "View Plans" option and add the yearly cost for your selected plan. 

  • There, you will see "High, "Medium," and "Low" uses segments for the annual care level. You can choose one, depending on your health and age level. 

  • Finally, click on the “Save and Continue” option. The calculator will estimate the probable cost for your selected plan. 

With it, you can determine how much you need to pay annually for Obamacare insurance, including monthly premiums and annual deductibles. 

Conclusion 

Obamacare insurance costs depend on various factors, including your state, age, household income, and how tactfully you handle the plans. Nonetheless, the Obamacare insurance marketplace is an excellent way to secure your future and health concerns. It works even if you lose your job. 

Therefore, don't hesitate to talk to an insurance company and find the best plan for you. Considering the premium and deductible, it will be more than profitable for you. Even if you consider the cost high, you can enroll in the catastrophic plan as a beginning. 

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