Getting health insurance through your job is often a major perk. Group coverage can offer better benefits at a lower cost than individual coverage. But what if you don’t like the plans offered by your employer? Maybe the premiums are too high or your doctors aren’t in network.
The good news? You may have other options. The bad news? Rejecting employer coverage can make the alternatives less attractive.
Affordable Care Act Marketplace Coverage
Through HealthCare.gov or your state’s health insurance exchange, you can shop for individual coverage. If your income is low enough, you may receive premium tax credits and cost-sharing reductions that make premiums and care more affordable.
You won’t be eligible for these money-saving features, however, if your employer’s plan meets the ACA’s requirements for affordability and minimum value.
Tax Breaks on Workplace Coverage
If your employer offers coverage, they’re probably paying most of the premium. Your employer considers that expense part of your compensation. Yet, if you reject coverage, you’re unlikely to get a raise. Plus, when you get coverage through work, you pay your premiums with pretax dollars — a savings you typically don’t get with individual coverage.
Timing
When you reject employer coverage outside of annual enrollment, you won’t be able to get a marketplace plan or opt back into employer coverage unless you have a qualifying life event. You’ll still be able to buy an individual plan outside of the marketplace, but these plans aren’t eligible for subsidies or cost sharing.
Make an Informed Choice
Before opting out of employer coverage, let us help you evaluate your options. We can help you compare multiple plans with your workplace insurance so you can make an informed decision and get the best policy for your budget.