Bronze, Silver, or Gold: Which One Is Best For You?
When choosing a health insurance plan, it can be tempting to want the very best. Because of the Olympics, we assume plans follow the same structure: Gold being the best, Silver the runner up, and Bronze third best. But there’s more to it than that!
All options in the individual and small group market are designated by color. They are Bronze, Silver, Gold and Platinum. In the individual market, there are no Platinum plans here in Illinois. There's only Bronze, Silver and Gold, but small groups do have a Platinum option, too.
These color designations are given to all carriers and plans based on deductibles and out-of-pocket expenses. And year after year, the regulations of the Affordable Care Act dictate what the plan components can (and can’t) be. In any given situation, somebody's needs—how they use their policy and how they use their insurance—will help dictate what kind of plan to pick.
When the government gives people financial aid to offset the cost of a policy, it’s like they’re giving you a coupon to buy a Bronze, Silver, or Gold plan. However, the Silver plans are the only ones that have cost sharing, which lowers your deductible, out-of-pocket, and copays.
The cost sharing option of Silver plans probably sounds good, but whether it will work for you depends on how you use your health insurance and what you allocate for your monthly budget. If you are a frequent user of your plan, having a higher monthly cost with no deductible and $0 copays may feel like the right choice to you. With Bronze plans, the monthly cost after subsidy is lower, but includes a larger deductible and copay. Many people plan their budget to include the Silver plan option, but some Bronze plans are very well subsidized, keeping the monthly cost down to a minimum fee. That being said, insurance is very expensive and we don’t recommend overbuying for the sake of overbuying—purchase coverage based on what your current usage is.
There's no advantage to buying a Gold plan in the individual market when you're getting subsidized. Someone who receives financial assistance would very rarely choose a Gold plan because Silver plans are better than Gold plans. The Silver plans do not have the $0 deductibles and $0 co pays when they're not subsidized, so for full price payers we’d be reviewing plan options that are best for your budget with the components you want. But for anyone paying full price in the individual market, we would try our best to get you out just because of the extreme cost! We would only recommend doing that if a person were in between jobs or needed a catastrophic-style temporary plan.
So, to review, the plan you choose really comes down to two factors: budget and usage. If you don’t receive a subsidy for your insurance, any color plan could work for you! If you receive financial aid for insurance, a Silver plan is the best option.
At The Insurance People, we always hear people out on like how they use their insurance and how that works for them. We help people choose a plan that works best for their circumstances. Contact us to find out what color plan best suits you!
