Can’t Afford Health Insurance After Losing a Spouse? Here’s a Guide to ACA Options

When a loved one passes away, finances can become a significant concern, especially if the surviving spouse relied on their income for health insurance. The Affordable Care Act (ACA) offers various options to help individuals in these situations. Here’s a comprehensive guide to ACA insurance after losing a spouse:

Income Qualifications for ACA Subsidies

To qualify for ACA subsidies, individuals must meet specific income requirements. The income limit for 2023 is $54,360 for individuals and $111,000 for families of four. If your mother-in-law’s income falls below these thresholds, she may be eligible for premium tax credits to lower her health insurance costs.

Medicaid Eligibility

Medicaid is a joint federal-state program that provides health insurance to low-income individuals. Each state has different eligibility criteria. In Alabama, the Medicaid program is not expanded to cover all low-income adults. Therefore, your mother-in-law will likely not qualify for Medicaid unless she meets specific disability criteria.

Withdrawal from 401(k) to Meet Income Requirements

Withdrawing funds from a 401(k) can be an option to meet the income requirements for ACA subsidies. However, it’s important to consider the tax penalties associated with early withdrawals. Consult a financial advisor to weigh the pros and cons of this approach.

Catastrophic Health Plans

Catastrophic health plans offer low premiums but come with high deductibles. They are designed to cover unexpected medical expenses and may not be suitable for individuals with ongoing health needs.

Employer-Sponsored Health Insurance

If your mother-in-law has the option to join an employer-sponsored health plan, it may provide comprehensive coverage at a reasonable cost. However, this option is not available if she is not currently employed.

Filing for Disability

Applying for disability benefits can help your mother-in-law qualify for Medicaid and potentially receive financial assistance. The process can be lengthy, but it’s worth exploring if she faces significant health challenges.

Seek Professional Guidance

Licensed health insurance agents can provide valuable assistance in navigating the ACA and finding affordable health insurance options. They can help determine eligibility for subsidies, assess different plans, and guide your mother-in-law through the enrollment process.

Remember, it’s crucial to research all available options and consult with experts to find the best solution for your mother-in-law’s specific situation. The ACA provides various pathways to ensure access to affordable health insurance, even in challenging circumstances.