Once You Finally Get Your Obamacare, Don't Forget the Premium

Some people are among the big winners under Obamacare. If you are old enough to have to pay staggering insurance premiums but too young to enroll in Medicare, chances are you can do quite well with the plans offered under the Affordable Care Act.

For me, under the old system, the only insurance I could get was with my state's health insurance risk pool. My premiums and deductibles together came to $1721 a month. It took about a dozen attempts over a six-week period to finally log into the healthcare.gov site, but because I had a serious illness and didn't work part of the last year, and my income was low, my premiume for unlimited coverage in 2014 is just $45 a month for a plan that has a $0 deductible and $0 medical tests and generic prescriptions.

Thousands of people are finding out that Obamacare actually is a great deal. And because the health insurance tax credit is refundable, those young people whom many don't expect to apply for health insurance coverage could even find out that they get paid to enroll in health insurance, their healthcare credit exceeding their insurance premiums so they get money back when they file their 2014 tax returns in 2015. Not everyone will qualify for both low premiums and a high tax credit, but it's certainly worth taking a look. The healthcare.gov site can now run the calculations for you.

To get all this great coverage, and to claim your tax credit, however, there is still one thing some will forget to do:

Premiums have to be paid on or before the first day of coverage.

Of course, as you might imagine, it's not necessarily all that easy to find out where to pay your premiums. Here are some options.

Read More: Fifteen Out-Right Lies About Obamacare

• Pay when you enroll at healthcare.gov. Once the system approves your application, you will be taken to a secure site where you can enter credit or debit card information. If you get a policy with a low, low premium, why not just take care of that small amount right now?
• Pay when you are billed by your health insurance provider. The company that issues your policy will offer a variety of payment options. You may be able to give them bank account information for a debit to your account. This service is usually free. Or you may be able to charge your premiums to your credit card. This service usually is handled by a third party and costs, most typically, $9.95. Or you may be able to send your payment by Moneygram at Albertson's, CVS Pharmacy, or Walmart stores. Moneygram usually adds a $1.49 service fee to your payment, and it's essential to bring your account information and the receiver's Moneygram code with you when you send your payment.  A Moneygram, however, may not be credited to your account until the next day or even for 2 or 3 days around holidays. And for those who prefer twentieth century technology, insurance companies will still accept checks and money orders sent in by snail mail. 

What Happens If You Fall Behind on Your Insurance Premiums?

While premiums for health insurance coverage under the Affordable Care Act are considerably reduced, you still have to pay them. If you miss a payment, your coverage is likely to be canceled, and you will have to apply all over again. You won't be able to get coverage until the 1st or 15th of the month nearest to your application date, and the healthcare.gov site does not necessarily transmit your appliation to the insurance company the same day you are approved.

However, there are also cutoff dates for any enrollment at all. The open season for health insurance applicatons ends March 31, 2014. After that date, for the next six months, you can only get new coverage if:

• You or a family member qualifies for Medicaid or CHIP (children's Medicaid, which usually has more lenient enrollment requirements than adult Medicaid).
• You change your state of residence.
• You have a baby.
• You adopt a baby.
• You or your family's income falls below certain levels specified on the healthcare.gov site.
• You have a qualifying life event, such as getting married, getting divorced, or losing your spouse.

If you become eligible for Medicaid or CHIP under your state's rules, you can apply for health insurance (with no premium cost) at any time. 

But what happens if you just can't find the money to pay your monthly premium after you get signed up? Or if you can't afford your part of the premium for your employer's health insurance plan?

It's a little easier if the problem is you just can't afford your part of the premium on the plan your employer offers. If health insurance would take more than 9.5% out of your check, you are eligible to shop for insurance on healthcare.gov even if your employer offers insurance. And if you could afford the premium for yourself but not for the rest of your family, you may be able to sign them up for health insurance at a more affordable rate.

You may also be able to sign up for a policy offered at a lower cost if your employment status changes from full-time to part-time during the year and your employer does not offer coverage to part-time employees.

Read More: Why Silver May Be Better Than Gold (Or Platinum) For Obamacare

But if there's any possibility at all that you might encounter a situation in which you simply could not make your health care insurance payments, try to choose a plan that you absolutely, positively can pay for every month. If your income is under $45,000 a year if you are single or under $90,000 a year for a family of four, you may be able to find a higher-deductible Bronze plan that costs $0 a month and may even pay you money back as a tax credit in 2015. But remember, if you want to get assistance with your deductible costs (that's also offered under the Affordable Care Act), you will have to enroll in a Silver (not Bronze, Gold, or Platinum) plan. For most lower- and middle-income Americans, Silver plans offer the best value.