Which health plan will work best for me?

Due to the introduction of health insurance subsidies and the rules how they can be used, choosing the right health plan gained a new approach. Below, we have provided how different subsidy types effect the amount of your premium as well as your out-of-pocket expenses.

The Premium Subsidy can be applied to one of the four metal Plans: Platinum, Gold, Silver, or Bronze. The amount of subsidy is based on the price of the second cheapest Silver Plan. That is why, “transferring” it to a more expensive plan, for example, Gold Plan, will cause an increase in the premium you pay for insurance. On the other hand, transferring the subsidy to Bronze Plan, will cause a decrease in the premium.


  Platinum Plan Gold Plan Silver Plan Brown Plan
  Platinum Gold Silver Bronze
         
Total Premium $600 $500 $400 $350
Premium Subsidy $300 $300 < $300 > $300
Your Premium $300 $200 $100   $50

Your Premium = Total Premium - Premium Subsidy


Cost Sharing Reduction Subsidy can only be applied to Silver Plan. Due to the fact that this subsidy decreases your out-of-pocket expenses (deductible, co-insurance and copayment), in reality it may turn out that Silver Plan is actually better than the Gold Plan, as is shown in the example below.


  Platinum Plan Gold Plan Silver Plan Brown Plan
  Platinum Gold Silver Bronze
         
Total Out-of-Pocket Max. $500 $1,500 $2,500 $5,000
Cost-Sharing Reduction     $1,500  
Your Out-of-Pocket Max. $500 $1,500 $1,000 $5,000
Your Premium $300 $200 $100 $50

Your Out-of-Pocket Maximum = Total Out-of-Pocket Maximum - Cost-Sharing Reduction

As you can see in the example above, by choosing Silver Plan over Gold Plan, you save money on monthly premium and lower your out-of-pocket expenses to $1,000.

The example above only illustrate the general rule of how the subsidies can be used within the new health insurance plans.




OBAMACARE
Health Insurance


Government Health Insurance Subsidies

In order to help cover the high costs of health insurance, Obamacare introduced subsidized insurance. Read more.

New Metal
Health Plans

In order to facilitate comparison of health insurance plans, the Reform introduced new health plans: Platinum, Gold, Silver, Bronze, and Catastrophic. Read more.