(09/25/13) - With just under a week until it begins, we are getting an early look into how much it will cost to buy health insurance on the marketplaces under the Affordable Care Act.
Open enrollment begins next Tuesday, Oct. 1. Michigan did not set up its own healthcare marketplace, so you will be using the one set up by the federal government.
Wednesday, the Obama Administration released its first figures on those policies. Before Wednesday, no one had any idea of what the plans would cost an individual or a family of four.
These are averages - the real cost of the plans won't be out until Oct. 1.
Let's take a look at what a single 27-year-old man or woman with a $25,000 income is expected to pay.
For a middle of the road silver plan, healthcare coverage would cost them $145 after the federal subsidy or tax credit. If they chose the cheapest bronze plan, it would cost that same 27 year old $89. A Bronze plan covers up to 60 percent of your medical costs.
If you're a family of four making $50,000 a year, a silver plan would cost you $282 after the tax credit and $80 for a bronze plan. A silver plans covers up to 70 percent of medical costs.
On average, 43 plans will be offered to Michigan residents. People will pay dramatically different premiums depending on their income, family size, age, hometown and tobacco use.
While the state has had a limited in role in setting up the marketplace, they will be releasing a complete list of plan benefits, prices and a tool to help you determine how much you'll pay for insurance.
As a reminder, if you have Medicare or Medicaid, you don't need to buy insurance.
Some people in Michigan are welcoming the news of the new health care law. Others are worried it may break the bank.
Carolyn Perge of Clio has basic healthcare coverage through the Genesee Health Plan. She was told her and her husband's income was just over the eligibility requirement for Medicaid.
"I've looked at prices for insurance and it's still out of my price range, after paying bills," she said. "Our combined income is just over a $1,000 so right now you got me thinking I need to re-examine a lot of things if I can get some kind of insurance."
It's possible Perge could qualify for Medicaid expansion or buy health insurance on the marketplace. But she isn't sure if she can afford it.
"I know after paying just my rent alone that leaves me with less than $300 a month to live on so between gas to get to school so I can find a better job, I couldn't afford it," she said.
The Obama administration released, Wednesday, the average cost for some of the benefit plans. Michigan's rates are among the cheapest.
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