Deductibles, or the amount paid before insurance kicks in, can be high. A mid-level plan in the Obamacare marketplace had an average deductible of about $4,800 per person compared to about $1,700 for an employer-based plan. And remember, premiums can be up to three times higher for older participants compared to younger ones.
The Covid relief legislation, known as the American Rescue Act, expanded eligibility for tax credits to offset the cost of insurance purchased through the government exchange. Previously, only those who made 400% or less of the federal poverty level (up to $51,520 for singles, $69,680 for a couple, or $106,000 for a family of four) could qualify for assistance with premiums.
The legislation removed the 400% cap, but only through the end of 2022. President Joe Biden's catch-all spending plan proposed to keep the expanded subsidies in place through the end of 2025, but it remains bogged down in Congress.
Even for those who aren't fazed by some of the less generous terms provided by marketplace insurance, the choices can be overwhelming. There are more than 100 plan choices on average, according to a recent study by the Department of Health and Human Services.
Workers may not feel as handcuffed as they once were to their employer's health insurance plans. But their health insurance options if they're choosing a less conventional path—whether it's to lie flat or become self-employed—are still decidedly less comfortable.
Alexis Leondis is a Bloomberg Opinion columnist covering personal finance. Previously, she oversaw tax coverage for Bloomberg News.