Q: Can I Buy Health Insurance That Is Not Obamacare?
Asked by Anonymous on September 29, 2017
Yes, it’s possible to buy health insurance that is not Obamacare, although there are significant drawbacks to doing so.
First, it’s important to understand that Obamacare is just another name for the Affordable Care Act. Obamacare sets the rules for health plans bought by individuals under the age of 65. When you buy health insurance on your own – and not through an employer – then you’re probably getting Obamacare. If your plan has Bronze, Silver, Gold, or Platinum in its name, then it’s Obamacare.
That said, there are many options for health insurance that’s not Obamacare. These Obamacare alternatives generally have very large doctor networks.
- Christian health ministries, or faith-based healthcare, are religious charities that share the cost of healthcare among their members. Premiums can be as low as $100 per month. These plans have very specific rules about what they do and don’t cover. Around 1 million people are enrolled in faith-based plans. You won’t have to pay a tax penalty if you rely on this coverage.
- Short-term health insurance lasts for up to 364 days at a time, with premiums as low as $50 per month. It won’t cover everything and will require you to pay thousands of dollars out-of-pocket before it shares the cost of your care. Short term plans are designed to affordably protect you in an emergency. They don’t cover pre-existing conditions or long-term health issues. Short term plans are popular with travelers, students, and those waiting for comprehensive coverage to begin. Around 160,000 plans are sold each year. You no longer have to pay a federal tax penalty if you rely on short term insurance, but it’s not available in all states.
- Fixed-indemnity, or critical illness plans, give you predetermined amounts of money if you’re diagnosed with a certain disease (like cancer) or get into a specific accident (like losing a limb). You will not have to pay a federal tax penalty if you use fixed indemnity to replace Obamacare coverage.
- Paying for care on your own is always an option, although it’s not a very affordable one.
You can also buy separate coverage for specific needs, like dental or vision insurance, from a number of insurers. Obamacare plans aren’t required to include dental and vision care.
If you have minimal income, you can apply for Medicaid, which is low-cost government insurance. There are different requirements to receive Medicaid in each state, and it must be renewed at least once per year.
Obamacare means your major medical health insurance must have certain coverage rules and consumer protections. On one hand, Obamacare plans won’t reject you for a pre-existing condition. Plus, you won’t be subject to a penalty under the individual mandate imposed by the Affordable Care Act. On the other hand, Obamacare insurance will charge you for 10 essential health benefits, even those that you don’t want.
Taking the Next Steps
Whether you’re considering on-Marketplace health insurance or something off-Marketplace, it’s good to take some time and research your options. Search our database of health insurance plans to find the right plan for each of you.