4 Things You Need to Know About Obamacare 2015

It's that time of year again: Obamacare's health insurance enrollment for 2015 coverage is now underway. During this period, consumers will be able to enroll in new health insurance plans without worrying about being turned down by insurance companies. While the focus is mostly on uninsured consumers in the US, those who enrolled last year should also know that there are additional steps they should take this year.

Here are 4 important things you need to know as you prepare to sign-up

1. Your automatically-renewed plan might be different: Even if you bought a plan on the exchange last year, you should still look again. If you do nothing, you'll be automatically re-enrolled by your insurer...but there's a catch! Because insurance companies make slight alterations to their plans on an annual basis (from out-of-pocket costs, to copays, to coinsurance), you're not guaranteed to have the same exact plan you had last year. In many cases you'll be given a "similar" plan that is effectively the closest offering the insurance company has available. Of course, these small differences could be a deal breaker to some people so you'll want to double check on which plan the insurer is re-enrolling you in.

2. More health insurance providers are entering the exchanges: The second year of Obamacare will showcase more insurance companies that have decided to participate in this year's exchange. Behemoth insurers like United Healthcare, who did not offer plans on the exchanges last year, will be active participants in 2015 in roughly half of the states. This gives consumers a new slew of options to pick from.

3. Plan prices are changing: The introduction of rate changes, new companies, and more plan options are substantially shifting the landscape of the health insurance exchanges this coming year. Research from Value Penguin showed that last year's cheapest insurers have actually raised rates, while last year's more expensive companies have cut rates by as much as 35 percent. Because plan prices have fluctuated, it will be important to reevaluate your insurance plan options and do a thorough comparison before purchasing. Shoppers need to be aware that last year's most desirable plan options won't necessarily be this year's most coveted choices.

 
4. Subsidies will change as a result of new plan prices: Because plans and premiums have changed, individuals' subsidy amounts will likely change. As a reminder, subsidy amounts are based on how much the second cheapest available silver plan costs. In areas where this benchmark plan is more expensive consumers will see an increase in their subsidy amount. The opposite also holds true. For counties where the benchmark plan price has dropped, consumers will see a reduction in their subsidies. This will result in higher premiums you'll pay for a plan.

Unless you have a reason for staying with your particular plan, such as a provider network that you like, there's a good chance you could benefit from shopping around on the exchanges this year. Sizable savings are possible if you're willing to do the homework and look at the new plans that insurance companies are putting together for 2015.