Each year brings a few new things to the health insurance industry. Are you considering making changes to your health insurance plan this year? To do so, you’ll need to have a special qualifying life event, such as the birth of a child, experience job loss or be turning 65. Or if you’re getting a head start on 2021, it is always a good idea to check in to make sure your current plan has everything you need. Even if you aren’t thinking about making a switch, you might find something that suits your needs better than the health insurance you have now.
Here are three things to know about health insurance in 2020.
1. ICHRA Offers Policyholders Better Control Costs
The individual coverage Health Reimbursement Arrangement (ICHRA) is a new member of the ever-expanding HRA family of employer-funded insurance accounts. This account-based health insurance plan gives employers the chance to more effectively control costs by offering defined non-taxed reimbursements to workers for qualifying health insurance costs. Such costs include monthly premiums for individual market plans purchased through private insurance companies or the Marketplace.
The ICHRA plan puts a great deal of freedom into employees’ hands, allowing them to choose the best individual health insurance plan for them and their families. Once the employee incurs health costs, the employer reimburses those costs. Employers have the flexibility to decide how much they want to contribute to their employees’ ICHRA. Still, they must remain aware how their contribution could affect employees’ eligibility for premium tax credits.
2. Small Business Employers Can Offer a QSEHRA
A qualified small employer Health Reimbursement Arrangement (QSEHRA) gives small business employers a chance to contribute to employees’ health insurance coverage, even if they do not offer a traditional health insurance plan. Another new HRA, a QSEHRA allows employers to help employees pay for qualified medical expenses, including each employee’s household monthly insurance premium. If employers choose to offer this benefit, they send out notices to let employees know that they can sign up. Employees insured through the Marketplace may consider their participation carefully, as such a plan could reduce or eliminate the available tax credit.
3. Private Insurers Offer Medicare Advantage Plans
People are increasingly asking just what is a Medicare Advantage plan? Medicare Advantage plans are health insurance plans primarily aimed at helping customers combine plans for convenient, comprehensive coverage and long-term savings. Private companies sign contracts to work with Medicare to help cover all the available benefits in Part A and Part B of the Medicare Advantage plan. Here are a few of the best known Medicare Advantage plans:
- Preferred Provider Organization (PPO) Plans
- Health Maintenance Organization (HMO) Plans
- Special Needs Plans
These plans, also known as Medicare Part C plans, are comprehensive plans that provide the same benefits as Medicare Parts A and B and more options that may include:
- Vision care that may include contacts and glasses
- Dental care for routine visits, X-rays, exams and dentures
- Wellness programs for nutrition and fitness, which may include a fitness center membership
Many Groups Benefit
Senior citizens and employees stand to benefit from the various health insurance changes, improvements and offerings of 2020. Whether someone needs better insurance coverage through work or Medicare, there are exciting new options available for nearly everyone worth a closer look.
It’s good to know that Medicare advantage plans can be a good way to personalize insurance for one’s convenience. My father might start trying to get a Medicare insurance coverage soon because he might get an early retirement from his job. As such, he plans to start preparing the things he needs to get done for the later stages of his life.