When it comes to the Affordable Care Act, people either love it or hate it. But, no matter what you think about Obamacare, there are some facts that you should definitely be aware off, especially if you’re a retiree or if you’re close to retirement.
You can qualify for a subsidy
Tax credits and cost-sharing reduction subsidies can help you lower your out-of-pocket costs. But, in order to qualify for them, you have to still be ACA eligible. If you make between 100% and 400% of the Federal Poverty Level, you can qualify for premium tax credits. If you make between 100% and 250% of the FPL, you can qualify for out-of-pocket cost assistance.
There is a limited window in which you can apply
Unfortunately, you have a limited window each year when you can apply for healthcare coverage at the federal marketplace. If you miss it, you may have to purchase insurance through a carrier outside of the marketplace and wait until the next open enrollment period comes.
There are penalties
It doesn’t matter if you’re retired or not, if you can afford health insurance but you choose not to buy it, you will have to face some very annoying penalties. There are two ways these are calculated. You either pay per household or per person.
Obamacare is not Medicare
Once a person reaches the age of 65, he or she moves from Obamacare to Medicare. It doesn’t matter if the person is retired or still working.
Your employer’s coverage might be better
If you’re a senior but you’re still working, your employer’s coverage might be a much better choice than Obamacare. For starters, you probably won’t qualify for any subsidies or tax credits. And you’ll probably also have more options there. Of course, it’s always better to do your homework before you decide which one you choose.