Healthcare expenses are on the rise, which can make finding affordable care difficult. However, there are several low cost health insurance programs available from the government that can reduce your out-of-pocket expenses. Here’s a look at some of the most popular health insurance programs for low cost healthcare.
The Affordable Care Act (ACA) allows for subsidies to be used to pay a portion of your health insurance premium. The amount of this portion is based on your household size and income. For example, lower income families generally receive a greater reduction to their health insurance premiums.
Medicaid is a health insurance program that specifically helps qualifying low-income families and individuals find affordable health care. This low cost health insurance program is run by state programs under federal guidelines.
As such, Medicaid eligibility can vary between states, but is typically available if you earn less than the current federal poverty level. Additionally, coverage for Medicaid can vary between state programs.
If you do not qualify for Medicaid based on your income, your children could potentially still qualify for the Children’s Health Insurance Program (CHIP). CHIP is available to children (and pregnant women in some states) who meet program requirements. While this state program is income-based, income limits are higher than that of Medicaid. Like Medicaid, program costs and benefits vary between state programs.
If you are a senior citizen or disabled person, you could qualify for Medicare regardless of your income. If you are a senior, you must be at least 62 years of age to qualify. Before you apply for Medicare, it’s important to know about its different parts, each of which impacts the cost and coverage of your insurance.
- Medicare Part A: Part A is hospital insurance. It provides coverage for in-patient stays and some home care and nursing home services. Part A is free to most Medicare participants.
- Medicare Part B: Part B provides the majority of your medical coverage, including visits with physicians, X-rays, ambulance services, mental health services, and other outpatient care. Part B costs are dependent on several factors, including your income and when you enrolled in Medicare.
- Medicare Part C: Part C provides hybrid plans that include Part A and Part B, but often include additional benefits, such as prescription drugs. The cost and coverage of these plans vary by plan, which is based on the area you live in.
- Medicare Part D: Part D covers prescription drugs.
Additionally, you have the option to enroll into Medicare supplement plans. These plans provide additional benefits or help cover specific cost-sharing expenses.
