What is the Minimum Amount of Health Insurance Coverage that I Should Have?

How much health insurance do I need?

Health insurance can be difficult to understand, and it can be hard to determine how much coverage you need. The minimum amount of health insurance coverage varies from one person to another. There are a lot of factors to consider when choosing coverage and finding the right amount for you and your family.

Legal Requirements

Under the Affordable Care Act individuals are required to have health care coverage. If you are not enrolled in a plan that provides the Minimum Essential Coverage (MEC) you may have to pay a penalty for each month you were not covered. The penalty is paid when you file your federal income tax return. Examples of plans that are considered to meet MEC include employer provided plans, government plans and individual plans purchased from an insurance company.

A qualifying health insurance plan must provide general coverage in order to be considered MEC. For instance, plans that offer discounts on medical expenses or plans that only cover vision and dental are not considered MEC. Simply having a plan that meets the MEC criteria is enough to exempt you from paying a penalty. The amount of coverage through your plan does not matter with regard to the fee.

Evaluate Your Specific Needs

Having medical insurance is enough to meet the requirement of MEC, but it is important to find a plan that fits your needs. There is not a one-size-fits-all solution to determining the proper amount of health insurance you should have for your situation. To find the right amount of coverage, look at your medical needs throughout a typical year. Write everything down to easily keep track of it all. Count how many doctor’s visits you go to in a normal year. Track both wellness visits and visits to a specialist if you have a chronic condition. Make note of any prescription medications you take. Do this for yourself and any dependents you have.

Find the Right Plan

Once you have an understanding of your specific medical needs you can find a plan that best serves those needs. The minimum amount of health insurance coverage that is ideal will allow you and your family to receive the amount of care you need based on what you tracked over the year (see above). If the cost of the insurance is less than what you would pay without insurance, including the MEC penalty, then that is the right amount for you.

Figuring out this number can be hard, so that is why Bob Johnson Insurance is here to help. Click here to contact us with any questions you may have.


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What is the Minimum Amount of Health Insurance Coverage that I Should Have?