Health insurance is an essential aspect of living. It provides peace of mind and financial protection in times of need. The US government was aware of this, and that’s why it introduced the Health Insurance Marketplace Plan under the Affordable Care Act in 2014.
Health insurance marketplace plans are meant to be a one-stop-shop for finding and purchasing health insurance. Marketplace plans provide coverage for essential health benefits that include doctor visits, emergency services, hospitalization, maternity and newborn care, preventive and wellness services and prescription drugs.
However, like everything else in life, these plans have both pros and cons. Understanding the advantages and disadvantages of health insurance marketplace plans can help you make an informed decision when it comes to choosing one.
PROS
1. AFFORDABILITY
One of the significant advantages of marketplace plans is that they are affordable. This is because the government provides financial assistance to help people pay for health care. Depending on their income level, individuals and families can qualify for premium tax credits that reduce the cost of health insurance.
2. EASE OF USE
Shopping for health insurance in the marketplace is easy and convenient. When you purchase a plan from the marketplace, you can compare coverages from multiple insurers, see the total cost of each plan, and compare benefits.
3. NO PRE-EXISTING CONDITION EXCLUSIONS
Health insurance marketplace plans can’t deny you coverage or charge you more because of a pre-existing condition. This means that people with pre-existing conditions can now afford to purchase health insurance to cover their medical expenses.
CONS
1. LIMITED NETWORK OF PROVIDERS
One of the biggest disadvantages of marketplace plans is that they usually have a limited network of providers. If you go to a doctor or hospital that isn’t in your plan’s network, you may have to pay more or, worse, pay the entire bill out of pocket.
2. HIGH OUT-OF-POCKET COSTS
Most Marketplace plans have high-deductibles that must be met before insurance pays for covered expenses. This means that you may have to pay more out-of-pocket for medical services before your insurance benefits kick in.
3. UNPREDICTABLE PRICING
The cost of healthcare services and prescriptions can differ from doctor to doctor, hospital to hospital, and pharmacy to pharmacy. This unpredictability makes it hard to accurately budget your expenses and may result in surprise bills that you hadn’t planned for.
Conclusion
The Health Insurance Marketplace Plan can be an excellent option for those who need affordable health coverage. By weighing the pros and cons, you can easily make an informed decision. Regardless of the plan you choose, make sure to stay within your plan’s network of providers to avoid any surprise bills. Remember to compare coverage options, know the health benefits of the policy, and consider your budget before choosing a health insurance plan.
