There’s a lot of misinformation flying around about this kind of health insurance:
MYTH 1: Non-Obamacare/ACA plans have limited coverage.
FACT: These plans provide excellent coverage for doctor appointments, office visits, hospital stays, surgeries, and prescription drugs worth up to $5 million. They also offer you a choice of many more doctors and hospitals than Obamacare/ACA plans.
MYTH 2: I will have to pay a tax penalty for buying a non-Obamacare/ACA plan.
FACT: Not necessarily. Speak with your accountant. If you’re on a plan for only part of the year, the tax is pro-rated, so you won’t have to pay the full amount. In many cases, the savings on premiums outweigh the tax penalty.
MYTH 3: If I get sick, I’m stuck with this plan.
FACT: You can go back to an Obamacare/ACA plan during the next open enrollment season with no medical questions asked. Also, some private plan providers offer guaranteed renewable options so you can keep your plan.
MYTH 4: These plans don’t cover maternity, mental health, or pre-existing conditions.
FACT: It depends on the circumstances, medications and history. Some pre-existing illnesses are covered. Maternity is not usually covered, but care for a new born might be. Treatment and medication for minor depression and anxiety are covered on some plans.
MYTH 5: I’ll have to answer lots of medical questions.
FACT: There’ll be simple medical questions about most major health conditions like heart disease, cancer, stroke, etc. But if you live a healthy lifestyle, and you qualify, the savings are huge. And you can rest easy knowing that you’re not just helping to pay for sick people that are in Obamacare/ACA plans.
MYTH 6: I can go without health insurance this year. I’m healthy.
FACT: Bad idea. The number one reason people file bankruptcy is because of unpaid medical bills. What if you break a leg? That could be $5,000 out of your pocket. What if you need an appendectomy? That could be $25,000 gone. What if you have a heart attack or stroke? That will be a whopping $100,000 or more. It’s just not worth the risk.
MYTH 7: I already bought an Obamacare/ACA plan. I can’t switch until open enrollment.
FACT: Not true. You can cancel it and purchase a non-Obamacare/ACA plan outside of open enrollment.