What Is The Health Insurance Marketplace?
Also known as “the exchange”, it is a service that assists citizens in purchasing affordable medical insurance plans. The government sometimes subsidizes the medical insurance policies sold as per the size of the family and your income.
Third party exchange health insurance plan is an alternative of “on exchange” (health insurance marketplace). Despite being different, each one has s specific benefit that surpasses the other.
What is a third party exchange Health insurance plan?
It is a policy of health insurance coverage that’s traded off the Health insurance marketplace (on-exchange). This type of plan is also known as individual or private health insurance plans. While using the term “private” may convey some negative sentiments, there are various benefits for choosing off-exchange Health insurance plans as well as limitations.
Is third party exchange ACA compliant?
To have a sharp competing edge, off-exchange insurers developed policies that meet the same standard as those of on-exchange when it comes to benefits. Thus, it’s often possible to end up with an ACA compliant plan when you purchase family or individual coverage.
Not all alternative marketplaces plan meet the requirement of Obamacare. The popular short-term medical insurance plan that has emerged due to new policies of Trump is not ACA compliant. But currently, there is no big deal anymore if you enroll in ACA or non-ACA compliant. Previously, ACA compliant plans will enable you to avoid tax penalties and accessing the privileges.
Why opt for third party exchange and not on-exchange plan?
Weighing between Health Insurance Marketplace and third party health insurance is accessible but challenging. The simple way to tackle this is by considering your needs. You have to understand both of them and identify which has the features that fit your cover. For example, are you qualified for a subsidy? If yes, then an on-exchange plan is the perfect choice for you.
You will receive financial assistance for your medical insurance. On the other hand, if you are making enough money, there is a higher chance of becoming a victim to the expensive cost of medical coverage through Health Insurance Marketplace. In this case, off-exchange medical coverage is the best option.
Another essential detail is the individual or family medical history. Medical history is a vital factor to consider. Is your medical history clean? Or are there health conditions that need special care? If you are free from any complicated medical conditions, then the alternative marketplace plan is what you need. It’s more affordable when compared to a marketplace plan.
Healthcare.gov Alternative comes in handy to the majority of the consumers who are not qualified to be assisted financially. However, to apply for tax credits, it’s a must to go through the glitchy system of the government. Below are some of the alternative to get an insurance cover without going through Healthcare.gov:
- Through Brokers and Insurance agents
You can easily access professional assistance from local brokers and insurance agents who have always been handy to consumers searching for the right medical cover. Such services are often free since the insurer pays the brokers & agents commissions.
Apart from the pros of helping uninsured people to purchase the medical cover, there are also limitations. The agents will only guide the uninsured person to health insurance companies they work with and get commissions.
- Web-Based brokers
Web-based brokers for insurance can easily be confused with the exchange websites run by the government. They offer the consumer a platform to compare various medical covers, their prices and even benefits that come along with them.
Some vendors such as GetInsured, GoHelath and eHealthinsurance have the approval to allow consumers to shop for medical covers through the health insurance exchange run by the federal government. These online brokers receive payment from insurance companies. And for this reason, their services are for free to the consumers.
For instance, if you opt for eHealthinsurance, you can access the online calculator which you will use to estimate your eligibility for tax credits. Also, you can compare various medical covers available then apply. After completion of the tax credit application, the company will handle the rest for you. They will follow up to ensure the consumer completes the process and purchase the medical cover.
When dealing with tax credits, these companies get limitations by the technical glitch of the federal government. And since not all the health insurance companies are on these websites, you will only gain access to those that have business relationships with the broker. Thus the customer will not access other better deals if they are available.
- Medical Insurance Companies
Some insurers permit sales of their various medical covers through their calling centres and websites. Through that, consumers can assess the insurance company list of plans which they offer in their particular state, including the prices through the HealthCare.gov section.
The primary limitations to this alternative are the sale of medical cover that’s not within exchanges and has tax credit incompatibility. Another downside is the eligibility clearance by the government before opting for a plan. Lastly, a comparison between various companies with similar services for a better offer is quite tricky.
- State-run Exchanges
You can be off the hook to using HealthCare.gov, but this relies on which state you live. Individual states have their state exchanges and with no need to use HealthCare.gov. These states include Washington state; Vermont; Rhode Island; Oregon; New York; Nevada; Minnesota; Massachusetts; Maryland; Kentucky; Hawaii; Columbia district; Connecticut and California. Meanwhile, ensure you don’t get fooled by fake websites pretending to be insurance exchanges.
- Navigators & Other assistance
Created through an act of health-care reform. Their sole purpose is to provide insurance assistance, financial aid and other government benefits such as children’s insurance and Medicaid. Since they are not linked to any company and have no charges for their services, they can give consumers all the options available. They are also handy in enabling you to start the process and follow up to ensure you are successful in getting a medical cover.
There are strict opening and closing rules of Obamacare enrollment. Unenrolled users can be left behind without insurance coverage for the rest of the year. Also, it’s inflexible as it does not allow any change in the existing plan until the opening of the enrolment period. Due to this reason, many people miss their chance of having medical insurance. But there is no need to worry. With Obamacare alternatives in place, it is never too late to have medical insurance. Moreover, they are more affordable, and it comes with coverage that is comprehensive and more convenient.
What is Obamacare Alternative?
Obamacare alternative is a health insurance cover that is being offered to the citizens by a private entity that is not within the ACA marketplace. Therefore, they are available for purchase all year round. While most of them meet the standard requirements for health insurance coverage options on the exchange, some have additional options that are handier in meeting your needs.
Types of Obamacare Alternatives
When you do your search on types of Alternatives, you will find a few options to select. Due to their diversity, some offer full insurance cover while others provide you with a limited offer of benefits.
- Supplemental Coverage
If you cannot apply for supplement coverage as your primary medical coverage, you can opt for a cheaper policy. Supplemental policies lack a bounty of benefits. Through this, you will end up with medical coverage that has advantages, and it’s more inexpensive than other Obamacare alternatives. Most of the time, people realize this form of pairing that works in their favor.
- Christian Sharing Ministries
Technically, Christian sharing ministries are not medical insurance cover, but they both have similar objectives. With this form of protection, you are required to pay a monthly fee that is smaller than what you will pay through the marketplace for a medical insurance premium.
When you need medical cover after enrolling with Christian Sharing Ministries, your bill gets posted, and people enrolled in the program come in to assist in covering the bill. This form of medical coverage is entirely new and exciting as an affordable means of Care Act. Also, it’s gradually rising in popularity among people.
- Employer-Sponsored Coverage
Most of the citizens get access to medical coverage through employment and not through the medical insurance marketplace. The majority of employers sponsor medical coverage for their employees. Supported by the fact that it’s a requirement for any employer with employees above the age of 50.
Employer-Sponsored coverage is also known as Group Coverage. It’s a great technique of saving the cost of medical insurance. With the employer covering the medical insurance premium, it is the most inexpensive and most affordable alternative to the Obamacare plan.
- Short-Term Coverage
The formation of short-term medical coverage was meant to be essential and not comprehensive by any chance. Also termed as temporary medical insurance cover, they compensated any left out benefits through the price of the cover.
According to history, short-term coverage was meant to be a backup. When people are in between coverage or work, and it’s for this reason that it is considered temporary medical insurance coverage.
With the launch of Obamacare, the short-term coverage vanished essentiality but later resurfaced in President Trump’s reign. Now, the short coverage can no longer be termed as temporary nor have three months limit. It is a fully-fledged plan that can cover you throughout the year. Moreover, there is a possibility of 3 years renewal limit.
- Private Coverage
The term private medical insurance creates chills and Goosebumps on most people when they hear it. Most people tend to picture individual coverage as a choice that only favors the wealthy and affluent people in society. But that’s understandable, as we’ve been made to believe while growing up that anything starting with the word private is costly. For instance, private schools are expensive compared to public schools and private jets are more expensive than civil airlines.
But when it comes to medical insurance cover, Private Coverage is inexpensive to families or as an individual than other similar options. It provides you with a better alternative to Obamacare. You may never realize, but the purchase of medical coverage through the ACA marketplace is more expensive than Private Coverage.
The insurers of the medical cover are private entities. For the private entities to offer insurance coverage, they must create the same price for everyone, and this is regardless of the risk that may occur. That means a healthy person with no diagnosed conditions will pay similar charges as to those with health complications. In the end, this results in an overall higher premium.
Depending on your income level, there are subsidies for low-income coverage. However, you have to qualify for support. If you can’t get much up the requirements for Obamacare, Private coverage is within your reach to ensure you insure yourself and even your family. Health Insurance Agent can connect you with the proper coverage so that you can take advantage of private health insurance.
- Indemnity Coverage
Among the non-Obamacare medical coverage, Indemnity Coverage is the most popular. They are more flexible and accompanied by a low price tag. Through this alternative plan, you are free to pick the medical provider of your own choice. But that’s not all; because Indemnity Coverage has no negotiations with your medical provider, your coverage is limited. If your deductible is $2000 and the doctor or physician charges $2500, you have to pay the extra $500 from your pocket.
- State Medicaid Offices
If you earn low income that is eligible for Obamacare, then you might have the right qualification for Children Health Insurance Program/Medicaid. Through Medicaid Expansion by Obamacare or via the existing rules. However, the rules for eligibility of this program deferrers and rely on which state you are.