Obamacare Premiums for 2018 Projected to Make Health Insurance Unaffordable for Many, eHealth Analysis Finds
A 28% premium increase would make health insurance unaffordable for the
average middle-class family of three with an annual household income
between
The eHealth analysis assumes the same group who bought health insurance for 2017 bought health insurance for 2018 at the projected 2018 rates. The analysis also uses federal poverty guidelines for 2017 to determine the income at which individuals and families become eligible for Obamacare subsidies.
The Affordable Care Act deems health insurance to be unaffordable if it costs more than 8.13% of a person’s modified adjusted gross income (MAGI or household income) to pay for the lowest cost plan available. In areas of the country where the health insurance available through government-run marketplaces does not meet this affordability requirement, individuals and families can qualify for an exemption from Obamacare’s individual mandate (the individual shared responsibility tax penalty).
For its analysis, eHealth looked at quoted health insurance premiums for
the lowest cost bronze-level health insurance plan across all 50 states
during the 2017 open enrollment period. eHealth then added 28% to the
quoted monthly premiums to estimate costs for 2018. This percentage
increase is based on estimates published by
With a 28% premium increase, the lowest cost bronze plan available in
2018 will cost the average unsubsidized family of three
eHealth then compared those premiums to the self-reported income of over 2,087 customers who bought their own 2017 health insurance from eHealth.com and then later provided income information in response to a voluntary survey. eHealth found that, at projected 2018 prices, Obamacare plans would be unaffordable for 29% of individual shoppers and 54% of family shoppers in this group.
“What we’re seeing now in Obamacare is death-spiral pricing, and in many
states only the heavily subsidized will be able to afford coverage in
2018,” said
Flanders continued: “It’s my sincere hope that our legislators can put politics aside, work together, and implement meaningful reforms to the Affordable Care Act so that millions of Americans are not priced out of the insurance market in 2018.”
eHealth’s Chief Data Officer
Based on estimated 2018 premiums and ACA affordability guidelines, eHealth’s analysis projects:
- Affordable insurance: Health insurance will be unaffordable for 29% of individuals and 54% of families, according to data from the 2017 eHealth customers that reported their income in a voluntary survey.
-
Individuals: For the average individual, age 41, health
insurance would be unaffordable if they earn between
$48,240 and $71,820 per year. -
Tax credits: Obamacare tax credits are available to individuals
with incomes below
$48,240 in the contiguousUnited States . -
Families of 2: For the average family of two, with a head of
household age 41, health insurance would be unaffordable for those who
earn between
$64,960 and $150,086 . -
Tax credits: Obamacare tax credits are available to families of
two with incomes below
$64,960 in the contiguousUnited States . -
Families of 3: For the average family of three, with a head of
household age 41, health insurance would be unaffordable for those who
earn between
$81,680 and $166,245 . -
Tax credits: Obamacare tax credits are available to families of
three with incomes below
$80,640 in the contiguousUnited States . -
Families of 4: For the average family of four, with a head of
household age 41, health insurance would be unaffordable for those who
earn between
$98,400 and $200,141 . -
Tax credits: Obamacare tax credits are available to families of
four with incomes below
$98,400 in the contiguousUnited States .
Individuals
| Age of applicant | 2017 lowest cost bronze (monthly) | 2017 lowest cost bronze (annual) | 2018 projected bronze (monthly w/ 28%) | 2018 projected bronze (annual w/ 28%) | 2018 MAGI income needed to afford coverage | |||||
| 18-24 | $202.00 | $2,424.00 | $258.56 | $3,102.72 | $38,163.84 | |||||
| 25-34 | $269.00 | $3,228.00 | $344.32 | $4,131.84 | $50,822.14 | |||||
| 35-44 | $307.00 | $3,684.00 | $392.96 | $4,715.52 | $58,001.48 | |||||
| 45-54 | $416.00 | $4,992.00 | $532.48 | $6,389.76 | $78,594.83 | |||||
| 55-64 | $629.00 | $7,548.00 | $805.12 | $9,661.44 | $118,836.90 | |||||
| Average (Age 41) | $380.14 | $4,561.68 | $486.58 | $5,838.95 | $71,819.81 |
Two-person families
| Age of applicant | 2017 lowest cost bronze (monthly) | 2017 lowest cost bronze (annual) | 2018 projected bronze (monthly w/ 28%) | 2018 projected bronze (annual w/ 28%) | 2018 MAGI income needed to afford coverage | |||||
| 18-24 | $395.00 | $4,740.00 | $505.60 | $6,067.20 | $74,627.31 | |||||
| 25-34 | $503.00 | $6,036.00 | $643.84 | $7,726.08 | $95,031.73 | |||||
| 35-44 | $538.00 | $6,456.00 | $688.64 | $8,263.68 | $101,644.28 | |||||
| 45-54 | $773.00 | $9,276.00 | $989.44 | $11,873.28 | $146,042.80 | |||||
| 55-64 | $1,199.00 | $14,388.00 | $1,534.72 | $18,416.64 | $226,526.94 | |||||
| Average (Age 41) | $794.40 | $9,532.80 | $1,016.83 | $12,201.98 | $150,085.90 |
Three-person families
| Age of applicant | 2017 lowest cost bronze (monthly) | 2017 lowest cost bronze (annual) | 2018 projected bronze (monthly w/ 28%) | 2018 projected bronze (annual w/ 28%) | 2018 MAGI income needed to afford coverage | |||||
| 18-24 | $652.00 | $7,824.00 | $834.56 | $10,014.72 | $123,182.29 | |||||
| 25-34 | $675.00 | $8,100.00 | $864.00 | $10,368.00 | $127,527.68 | |||||
| 35-44 | $730.00 | $8,760.00 | $934.40 | $11,212.80 | $137,918.82 | |||||
| 45-54 | $951.00 | $11,412.00 | $1,217.28 | $14,607.36 | $179,672.32 | |||||
| 55-64 | $1,297.00 | $15,564.00 | $1,660.16 | $19,921.92 | $245,042.07 | |||||
| Average (Age 41) | $879.93 | $10,559.16 | $1,126.31 | $13,515.72 | $166,245.08 |
Four-person families
| Age of applicant | 2017 lowest cost bronze (monthly) | 2017 lowest cost bronze (annual) | 2018 projected bronze (monthly w/ 28%) | 2018 projected bronze (annual w/ 28%) | 2018 MAGI income needed to afford coverage | |||||
| 18-24 | $653.00 | $7,836.00 | $835.84 | $10,030.08 | $123,371.22 | |||||
| 25-34 | $862.00 | $10,344.00 | $1,103.36 | $13,240.32 | $162,857.56 | |||||
| 35-44 | $947.00 | $11,364.00 | $1,212.16 | $14,545.92 | $178,916.61 | |||||
| 45-54 | $1,134.00 | $13,608.00 | $1,451.52 | $17,418.24 | $214,246.49 | |||||
| 55-64 | $1,529.00 | $18,348.00 | $1,957.12 | $23,485.44 | $288,873.80 | |||||
| Average (Age 41) | $1,059.34 | $12,712.08 | $1,355.96 | $16,271.46 | $200,140.99 |
About eHealth
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170622005375/en/
Source:
DMA Communications for eHealth, Inc.
Sande Drew, 916-207-7674
sande.drew@ehealth.com
or
eHealth,
Inc.
Nate Purpura, 650-210-3115
nate.purpura@ehealth.com