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Health Insurance Exchanges Can Save Money

hce-5Open enrollment in the health insurance exchanges created through Obamacare is scheduled to begin on October 1. The good news is many average Americans will be able to save money by taking advantage of these exchanges.

The ways that an average person can save through the exchanges include:

• Those who buy health insurance will not pay the $95 tax penalty imposed by the Affordable Care Act beginning in January, 2014. Under that provision persons without health insurance will have the penalty added to their income tax bill or deducted from their income tax refund.

• Those who buy health insurance through the exchanges will pay a lower monthly premium because part of the cost will be covered by a federal tax credit.

Need Health Insurance? Get Great Rates Fast and Easy. • Some people that use the exchanges might have lower deductibles, coinsurance and co payments. That means you’ll pay less for the healthcare services that you use.

• If you chose the right plan you can have all of the same services such as routine examinations and tests and vaccinations covered. That means you won’t have to pay for your annual physical, blood tests and your flu shot.

Most Americans can participate in Exchanges

The good news is that most Americans will be able to participate in the exchanges. All individuals that make less than around $46,000 a year and families and couples that make under $92,000 a year will be able to join an exchange and receive a tax credit. Families with several children can qualify for the plan if they make up to $99,075 a year or more.

Even if the tax credit takes just a few dollars off of your health insurance premium you will save money. The plans offered through the exchanges will be much the same as those for sale now. In Colorado the main difference between existing plans for individuals and the ones offered on the exchange seems to be the name.

Some people will be able to save more using exchanges. Individuals that make less than $28,725 a year, couples that make less than $38,775 a year and families with children making less than $58,875 a year can qualify for Silver Plans, which offer discounts on essential health services.

Switching Could Save You Money

One interesting detail of the exchanges that the Obama administration has been keeping quiet is the possibility that some people could save money by switching from employer based health insurance to the exchanges. IBM recently moved many of its retirees to an exchange to reduce costs. Individual employees could do the same.

To determine if you’ll save, check your pay stub to see how your employer is taking out money of your salary to pay for health insurance. Then go to your state’s exchange website and see how much you would pay for a policy through the exchange. Subtract the exchange figure from the employer figure and you’ll see if it’s worth it to switch or not.

There are some major benefits to using exchanges for many consumers. You can keep the coverage if you quit, get laid off or switch jobs on the exchange. The exchange might give you more choices and more options to save.