by Ashley
I was recently reading a debt update post over at Six Figures Under, where I saw that they were only paying $114/month for health insurance for a family of 5.
We pay $350/month for our family of 4. We surely must be overpaying then, right? This is one of the few areas that I haven’t examined yet for trying to reduce costs/fees since we started our debt reduction journey. Unfortunately, what I discovered makes me nervous for the coming year…..
I guess I haven’t thought about it (because I did know this fact), but our health insurance doesn’t fit the qualifications required now since the Affordable Care Act passed. Specifically, our current insurance does not include any prenatal coverage which is now a requirement of all health insurances (regardless of whether you are planning a pregnancy or not). When the Affordable Care Act passed, we received notice from our insurance that our policy would be expiring. But then a wonderful thing happened – due to some type of governmental stuff (protests? No idea, I’m not a hugely political person), our insurance was “grandfathered” in for another year. Basically, we got an extension until it is dissolved and goes away. That means we have our current insurance until December 31st of this year.
What do ACA-compliant insurance policies for a family of 4 look like in terms of price?
In a word…expensive!!!
The cheapest policies I found were in the $550ish range (through tax-payer subsidies), but they ran up to well over $1,000/month. I looked at several websites and some (through private insurance companies) were “set” prices. When I looked for insurance through the governmental/subsidy websites, they change based on what you earn (the more you earn, the more expensive the coverage). Since we’ve made a pretty decent income this year….it’s looking like the cost of health care is going to be pretty decent-sized too.
I definitely don’t want to start a political debate (I know this is an inherently political issue, so it’s hard to avoid), but I was really shocked by the numbers I saw. I guess it’s better that I priced the insurance now, in September, rather than get surprised with this fun fact on January 1, 2015. But at the same time, it doesn’t make me any less bummed to know that one of our non-negotiable monthly costs is going to skyrocket next year – possibly double, or more. *gulp*
This is all the more reason why we need to get rid of our debt – NOW! All those monthly payments are just consuming our monthly income! We’ve got to get out from under the weight of our debt!
Recommitment-city over here (not like I ever lost commitment, but this was one of those things that served as a big old wake up call!)
Out of curiosity (if you want to share) – How much does your family pay for health insurance? We currently pay out-of-pocket since my husband and I are both self-employed, but I think it might be worth looking into some sort of small business owner group insurance. I’ve heard of these but have never looked into them before. Perhaps my husband could get this for his small business and it would save us some money. Lots to look into!
