Skip to main content

Major Changes in Northeast Ohio Health Insurance Marketplace & Open Enrollment

The Affordable Care Act -- aka Obamacare -- has become an important program for many retirees who need health insurance to bridge the gap from when employer coverage exhausts until eligible for Medicare at age 65. For those utilizing these plans and especially those that use Medical Mutual of Ohio for their insurance, it's time to review your options during the open enrollment season.

As reported earlier this year, in partnership with New York City-based Oscar Health, Cleveland Clinic announced it is making its first entrance into the health insurance market with a product bearing its name. The co-branded health insurance plan will be available in Cuyahoga, Summit, Lorain, Medina and Lake with coverage beginning Jan. 1, 2018.

The Clinic also will not be participating in Medical Mutual of Ohio's (MMO) -- a large insurer of northeast Ohioans and headquartered in Cleveland -- individual ACA products in 2018, as Crain's Cleveland Business first reported. MMO switched to a Health Maintenance Organization (HMO) from a Point of Service (POS) network for its 2018 offering, and the Clinic opted not to participate.

Medical Mutual has added University Hospitals and Summa as part of their new HMO network to make up for the Clinic's departure.

Also important to note for snowbirds: the First Health network predominant through the southeastern part of the U.S. and 'in network' for MMO is no longer available on exchange plans as of 2018. Thus many snowbirds need to explore new options to ensure they have in-network coverage in both Ohio and Florida.

The government has dramatically reduced the open enrollment period this year; in most states it starts November 1 and ends December 15. This is very important because you cannot enroll outside of open enrollment unless you have a “qualifying event,” such as:
  • Marriage, 
  • Becoming a U.S. citizen, 
  • Birth or adoption, 
  • Involuntary loss of other health coverage 
  • Permanent move to an area where new health plans are available. This only applies in most cases if you already had coverage prior to your move. 
Can’t you just continue with the coverage you have today? If you’re happy with your current policy, that’s one option, but prices are going up by an estimated average of 15% as many insurers are unsure whether they can count on government reimbursements. It doesn’t hurt to look and see if your current insurer is raising rates higher than the competition.

By now, you know that comparison shopping is not as difficult as it once was. A benefit of the ACA is the standardization. You can choose a bare bones bronze plan, a silver plan with lower deductibles and broader coverage, or a gold plan with more of both, and the various plans in each category, to qualify to be on an exchange, have to offer similar coverage features. However, understanding the nuances of the network is not as clear in my opinion.

If you have a significant health issue come up recently, then shopping takes on a new urgency. You might consider switching from a bronze to a silver plan, or silver to gold. Or you might realize that you’re not utilizing the medical system as much as you expected, and drop down to a baser metal.

Roughly 85% of the 11 million people who buy through one of the exchanges qualify for tax credits that significant reduce out-of-pocket costs for deductibles and co-pays, and can also reduce premiums. While you may think this doesn't apply to you, we have several clients with substantial wealth that have obtained upwards of $6K+ in tax credits with proper tax and retirement distribution planning.
 
You can get help enrolling and comparing plans by phone or with a local in-person guide, called a navigator. ACA marketplace call centers are available 24 hours a day, every day except holidays. At HealthCare.gov, you can search by city and state or ZIP code to see a list of local organizations that can help you.

We'd recommend a competent local agent that specializes in individual policies for those under age 65 or a specialist for Medicare if over 65. If you need a referral, just let me know.

To Your Prosperity,
 
Kevin Kroskey, CFP®, MBA
www.TrueWealthDesign.com
 
Sources: 
https://www.healthinsurance.org/faqs/what-are-the-acas-enrollment-periods-and-when-can-i-enroll-outside-of-the-open-enrollment-period/
https://www.consumerreports.org/health-insurance/buy-aca-health-insurance-in-2018-what-you-need-to-know/
http://www.crainscleveland.com/article/20170615/news/170619852/cleveland-clinic-dives-health-insurance-market
http://www.crainscleveland.com/article/20170615/news/170619852/cleveland-clinic-dives-health-insurance-market

Popular posts from this blog

Diversification: Disciplinarian of Disciplinarians

Disciplined diversification works when you do and even when you don't want it to. Diversification in effect forces you to sell the thing that has been doing so well in your portfolio and to buy the thing that hasn't. While this makes rational sense, it is emotionally difficult to execute. Think back to the tail end of 2008--were you selling bonds and cash to buy stocks? Most likely you weren't unless your advisor or some sort of automatic trigger did it for you. Carl Richards of www.behaviorgap.com provided a good reminder of how diversification works in a recent NY Times blog post. The diversification he discusses here is more so related to equity asset-class diversification but also touches on the three basic building blocks--equities, bonds, and cash. He doesn't discuss alternative asset classes -- an asset class that doesn't fit neatly into the three basic categories -- being used to further diversification, but that's a detailed topic for another day. ...

2013 Key Tax Proposals

On February 13, President Obama's Fiscal Year 2013 budget was released. Follow this link to get a full copy of the   2013 Budget . The   Treasury's Green Book   containing general explanations of the Administration's revenue proposals can be found here. Robert Keebler, a leading professional in the area of tax and estate planning, highlighted some of the key proposals potentially affecting taxpayers below: Extend Bush tax cuts for all but the top two brackets. The only change would be to have the 33% and 35% rates go back to their pre-2001 levels of 36% and 39.6%. Taxpayers in the top two marginal brackets would still benefit from reduced rates on the portion of their income taxed in the lower brackets. Raise the long-term capital gains rate to 20% for single taxpayers making more than $200,000 per year, $250,000 for married taxpayers filing jointly and $125,000 for married taxpayers filing separately. Tax rate on qualified dividends would revert to ordinary income t...

Should We Go Back on the Gold Standard?

If you watched the Republican presidential debates, you might have noticed that a number of  candidates yearn for a return to the gold standard—that is, that every dollar issued by the government would be backed by a comparable value in gold bars that were stashed away in a government vault. Sen. Ted Cruz of Texas argued that the dollar should have a fixed value in gold, and Sen. Rand Paul of Kentucky added that printing money without backing in the precious metal destroys the value of our currency. Mike Huckabee, former governor of Arkansas, thinks that if not gold, then the dollar could be pegged to a basket of commodities. All are mostly concerned that printing money will cause runaway inflation.   But there may be several problems with this return to the fiscal system of the late 1800s and early 1900s. One is that inflation has barely budged even as the Federal Reserve Board was piling one QE stimulus on top of another, and the government was adding records amoun...