BCBS: If you like your plan, you can keep it!

BCBS announced that they will allow their individual policy holders to continue their current coverage.  BCBS had previously notified their individual policy holders that their current policies would be discontinued on December 31st and they would be migrated to the new Obamacare/Affordable Care Act compliant plans.  This announcement is welcome news for those who were happy with their coverage and wanted to keep it. 

BCBS stated that customers will still be given the option to transition to a BCBS of Illinois policy on the exchange if the customer would prefer that policy over their current coverage.   This may be beneficial if the individual is eligible for a premium tax credit or out of pocket subsidy.

BCBS will be contacting those affected by mail next week with their options.  

Highlights on subsidies:

There are two ways of obtaining financial assistance for health expenses under the Affordable Care Act.   There is a tax credit/subsidy to assist in covering the cost of the premium for the health insurance and a subsidy to help pay the out of pocket expenses (deductibles, copayments, etc.) of the health insurance. 

To qualify for a health insurance premium subsidy, your Modified Adjusted Gross Income* (MAGI) must be between 100% and 400% of the federal poverty level.   This works out to be about $11,500-$46,000 for an individual and $24,000-$94,000 for a family of four.   You will also not qualify for the premium subsidy if your employer offers coverage that is considered to be "affordable". 

The premium subsidies are on a sliding scale with the largest premium subsidy for people earning 100% of the federal poverty level. 

Medicaid is also expanded in several states to include individuals up to 138% of the poverty level.  If a person's MAGI is 138% or lower in those states, the person will be directed to Medicaid. 

In addition to the tax credit "subsidy" people may also qualify for assistance with their out of pocket expenses.  The subsidy for the out of pocket expenses is available to persons whose MAGI is 250% of the poverty level or lower.   They must also be insured under a plan in the "silver" coverage level. 

Assistance with the premium and the out of pocket expenses is only available on health insurance policies purchased in the state or federally run Marketplaces (commonly referred to as exchanges).