1. Affordable Care Act (ACA)
The Affordable Care Act is sometimes referred to as "Obamacare" and has helped make health coverage affordable and available to more people. The law gives consumers subsidies that lower the cost of health coverage for households with low income levels.
The ACA offers those with preexisting conditions or limited finances health plans that are more affordable through the Health Insurance Marketplace®. The ACA also prohibits anyone from being denied coverage due to preexisting conditions. Read 10 myths about the ACA.
2. Healthcare.gov
This is an exchange website run by the Federal government where you can compare plans and enroll in health coverage. Healthcare.gov is filled with information regarding how to apply for health coverage and which plan options are most beneficial for you.
3. Advanced Premium Tax Credit
An advanced premium tax credit (APTC) is based on your estimated income and household size for the year you apply for coverage. It's called an advanced premium tax credit because you can use the credit to help pay your monthly premium in advance, directly to your health plan. A health premium is the amount of money you pay for your health coverage each month.
Since the APTC is based on your estimated income, you need to reconcile the amount paid on your behalf when you file your federal tax return. Learn more about this process and how to save on health coverage.
4. Cost Sharing Reduction
A cost-sharing reduction (CSR) reduces your deductible, copayments and coinsurance when you receive a service. Qualification is based on your income and household size. The lower your income, the less you will pay each time you receive medical services. These extra savings are only available on Silver plans.
5. Metal levels
Metal levels can help show how a plan's cost and coverage are balanced. There are four different metal levels: Bronze, Silver, Gold and Platinum.
A higher metal level like gold will have a higher monthly premium but will save you more money when receiving care. This is a good option for those who expect to need a lot of health care. A plan with a lower metal level, such as bronze, typically has lower premiums but higher out-of-pocket costs when you need care. This option is ideal for individuals who don't anticipate needing much medical attention.
These categories do not effect the quality of care you receive.
6. Health Savings Account
A Health Savings Account (HSA) is an account available on some plans that lets you set aside untaxed income for medical spending. When you take money out of your HSA to pay for certain medical expenses, you can take it out tax-free. You can either keep the money in your account as cash savings or invest a percentage of the funds for tax-free gains. To open an HSA account, you must be enrolled in a high-deductible health plan.
Information and resources
To learn about more health terms related to your health coverage, explore our Individual and family health plans Learning Center. You'll find articles and videos on how to save on health coverage and how to choose the right plan for you.