Free Health Insurance Is Possible in 2018

You may have heard that some health insurance plans could be free in 2018. How? Because silver plan premiums are increasing at incredible rates -- an average of 37% -- for 2018 coverage. As silver plan premiums increase, premium subsidies also increase.

Premium subsidies can be used for any metal level plan (bronze, gold, silver, and platinum). For people who are within a certain income level, increased subsidies could completely cover the premium of the least expensive plan available: the high-deductible bronze plan. So, while it might seem counterintuitive, rising silver plan premiums are causing free health insurance plans across the nation.

How Did Free Health Insurance Happen?

As part of the Affordable Care Act (ACA), the government had been making cost-sharing reduction (CSR) payments to insurance companies to reimburse them for lowering the cost of copays, deductibles, and coinsurance amounts for low-income people. When the Trump administration cut the CSR payments, insurance companies raised the cost of silver plan premiums to make up for the funding loss because the companies still have to offer plans with CSR features.

Silver plans are the only metal level plans seeing spikes in premium costs because they are the only plans for which cost-sharing reduction subsidies are offered.

The other part of the puzzle is premium subsidies (also called premium tax credits). The amount of a premium subsidy is calculated using the second-lowest silver plan premiums available in an area, as well as each person's annual income.

For 2018, premium subsidies are available to people with 2017 annual income ranges of $12,060 to $48,240 for an individual or $24,600 to $98,400 for a family of four.

Because silver plan premium spikes also caused premium subsidies to increase -- by an average of 45% for 2018 -- many people who qualify for premium subsidies may be able to get a bronze plan for free. High-deductible bronze plans boast lower premiums, and they maintain the essential benefits that all bronze plans must include.

Also, gold and platinum plans, which have lower deductibles and more coverage than silver plans, could end up being less expensive than silver plans because of the increase in premium subsidies.
Even if you don't qualify for free health insurance, you could greatly reduce your premiums if you are eligible and apply for a premium subsidy.

Who Can Get Free Health Insurance?

This is where the high-deductible bronze plans and premium subsidies mentioned earlier come in.

The Kaiser Family Foundation did a study that found in 1,679 counties, a 40-year-old making around $25,000 a year could get a subsidy that completely covers the premium for a high-deductible bronze plan. In 104 counties, the same person could get free health insurance when making $40,000 a year. It all depends on your area's plan offerings.

Health Insurance Matters, Even If It's Not Free

Free health insurance is possible, but even health insurance that you have to pay for is useful. Plus, it's better to get a $0 premium plan than pay the tax penalty for not having insurance, which is at least $695 per adult in a household.

Just a few health insurance perks include access to free preventive care (such as STD/STI, physical, and mental screenings), essential health benefits, and yearly maximum-out-of-pocket limits on medical expenses.
And you won't get treated differently just because you are LGBTQ+. With the implementation of the ACA, getting coverage is not a hassle the way it may have been before the ACA. Nondiscriminatory protections have been put into place, so no health insurance company can discriminate against you for your gender identity, sexual orientation, or pre-existing conditions.

Shop Now Before Open Enrollment Ends

The open enrollment period for health insurance plans runs until December 15, 2017, unless you live in a state with an extended open enrollment period. Now is the only time you will be able to enroll in coverage for 2018.

Even if you have health coverage that you're happy with, it's a good idea to see what your 2018 premium will be and compare it to newly available plans. You may be able to get better coverage for a lower price.

A licensed health insurance agent can help you determine your subsidy eligibility, compare plans available in your area, and enroll in coverage. Just be sure not to miss your state's open enrollment deadline.