Employer Health Insurance and Obamacare: What You Need to Know

With the implementation of the Affordable Care Act (ACA), also known as Obamacare, millions of Americans gained access to affordable health insurance coverage. However, many people are unsure about how their Obamacare coverage will be affected when they start a new job with employer-sponsored health insurance.

Can You Keep Obamacare and Employer Insurance?

The answer is: __it depends__. If you are currently receiving premium tax credits to help pay for your Obamacare plan, you will no longer be eligible for those credits once you become eligible for affordable employer-sponsored insurance. This means that you will have to pay the full cost of your Obamacare plan or switch to your employer’s plan.

What is Affordable Employer-Sponsored Insurance?

Employer-sponsored insurance is considered affordable if the employee’s share of the premium does not exceed 9.12% of their household income. If the employee’s share of the premium is more than 9.12% of their household income, they may be eligible for premium tax credits to help pay for their Obamacare plan.

When Should You Drop Obamacare?

If you are eligible for affordable employer-sponsored insurance, you should drop your Obamacare plan as soon as possible. This will prevent you from having to pay back premium tax credits when you file your taxes.

How to Drop Obamacare

To drop your Obamacare plan, you can:

Log in to your HealthCare.gov account and click on the “My Plan” tab. Then, click on the “End Coverage” button.
Call the Marketplace Call Center at 1-800-318-2596.
Visit your local Health Insurance Marketplace office.

What if I Don’t Want to Drop Obamacare?

If you are not eligible for affordable employer-sponsored insurance or you would prefer to keep your Obamacare plan, you can continue to do so. However, you will not be eligible for premium tax credits.

Conclusion

If you are starting a new job with employer-sponsored health insurance, it is important to understand how it will affect your Obamacare coverage. If you are receiving premium tax credits, you will need to drop your Obamacare plan as soon as possible. If you are not eligible for affordable employer-sponsored insurance or you would prefer to keep your Obamacare plan, you can continue to do so. However, you will not be eligible for premium tax credits.

To learn more about Obamacare and employer-sponsored health insurance, please contact a licensed agent today.