Secure Health Insurance for January Coverage by Tomorrow | Global News Avenue

If you haven’t chosen a 2025 Health Insurance Marketplace (Obamacare) plan yet, you have two days to do so. Healthcare.gov has extended the insurance coverage deadline for January 1, 2025 from December 15 to December 18.

Premiums rise, but out-of-pocket caps fall

While health insurance premium costs generally increase for plans in 2025, the amounts vary by state and plan level. For example, many southern and midwestern states have seen price drops for silver-tier plans, while states in the west and northeast have seen price increases.

Although Premiums have gone upthe average maximum out-of-pocket expense (MOOP) amount has declined. The MOOP is the most enrollees must spend on covered services before an insurance company will cover all eligible expenses. The average out-of-pocket cost cap for an individual in 2025 is $8,277, down from $8,504. The family plan saw an even bigger drop, from $17,009 to $16,556.

How to lower insurance costs

To get the most affordable health care coverage, compare plans to find the insurance company and plan level that meets your needs. It’s also important to understand what government subsidies you may be eligible for.

The majority of Marketplace participants (92% nationally) are eligible to pass Premium Tax Credit (PTC). Enrollees can allocate tax credit funds to insurance companies throughout the year to reduce premium costs (called Prepaid Premium Tax Credit) or pay the full premium and receive a tax credit through a rebate.

In many cases, a PTC can offset increases in premium prices, and depending on your family’s income level, it may completely cover the cost of the premium. Four out of five Marketplace registrants can find the following insurance $10 per month or less Thanks to federal subsidies. Some states also offer subsidies.

Premium tax credit enhancements set to expire after 2025

Premium tax credit subsidies for health insurance Marketplace plans were created under the Affordable Care Act, commonly known as Obamacare. This has helped millions of Americans obtain affordable insurance.

Since then, health insurance coverage has been climbing, nearly doubling from 2021 to 2024. That’s partly because of the premium tax credit boosted by the March 2021 American Rescue Plan, which caps Marketplace plan health insurance premiums at 8.5% of income and makes millions of people eligible for lower-cost coverage.

Unless Congress expands these benefits, the American Rescue Plan Premium tax credit improvements expire By the end of 2025. Depending on household demographics, this could result in premium increases of 27% to 258%.

How to apply for insurance and use premium tax credits

To purchase a Health Insurance Marketplace plan, visit HealthCare.gov or your state’s marketplace website and apply. After you complete your application, you can compare different plan providers and coverage levels.

When you apply for Marketplace coverage, the website estimates how much PTC you are eligible for based on the information you provide about your family size, projected household income, and other factors.

You can choose whether to deposit some or all of your PTC with your insurance company to lower your monthly premiums. The PTC amounts shown are estimates only because your revenue and other factors may differ from your projections at the end of the year.

If you claim the premium tax credit when you file your taxes, you will use Form 8962 to calculate the amount you owe.

Please note that you will be responsible for any difference between your tax credit and premium amount.