Affordable Care Act

Will Insurance Under the Affordable Care Act be Affordable?

affordable care act

Since the passage of the Affordable Care Act (ACA) in 2010, there have been many discussions about how health care reform will benefit the 30 million Americans currently without health insurance.

As plans for the 2014 implementation of state health insurance exchanges are revealed, individuals are discovering that getting access to insurance coverage may come at a higher cost than expected.

The Kaiser Family Foundation projects these annual insurance costs for those currently uninsured:

  • Family of four earning $75,000 will pay $7,125 for premiums and possibly an additional $8,333 in out-of-pocket costs for copays and deductibles
  • An individual age 40 earning $30,000 will pay $2,509 in premiums and as much as $3,125 for out-of-pocket costs for copays and deductibles
  • A 60-year-old worker making $40,000 will pay $3,800 in premiums and up to $4,167 in out-of-pocket costs for copays and deductibles

In addition to the costs individuals will pay, the federal government anticipates spending an additional $1.6 trillion during the next decade to expand coverage for these 30 million uninsured Americans.

Fortunately, ACA regulations also are designed to protect uninsured individuals from an undue financial burden. If the insurance costs are more than 8 percent of their annual income, they are exempt from the individual mandate. In addition, individuals can opt out of the mandate by paying a fine of $695 yearly or 2.5 percent of their income, whichever is greater.

To learn more, read the Bloomberg article, “Unaffordable Cost Seen for Some Under Affordable Care Act,” and share your feedback.