Fewer Americans Will Need Health Insurance Subsidies in 2014: eHealth Analysis Finds Subsidy Eligibility Starts Below $41,500 per Year (Approx. 361% of the Federal Poverty Level)
In the 36 states where the federal government is operating health insurance exchanges, the average single American adult earning over
Younger adults will benefit more from lower costs, according to the eHealth analysis. The average single 27-year-old, earning over
The Affordable Care Act makes health insurance more affordable for persons earning between 133% - 400% of the FPL by providing government subsidies that limit these consumers' share of the plan premiums to a range between 3% and 9.5% of their income.
For example, a single woman with an income of just under
This table outlines a partial view of the premium affordability guidelines under the Affordable Care Act
Monthly Income As Percentage of Estimated 2014 Federal Poverty Level (FPL)** |
||||||||||
133% FPL |
150% FPL |
200% FPL |
300% FPL |
400% FPL |
||||||
Household Size 1 | $1,273 | $1,437 | $1,915 | $2,873 | $3,832 | |||||
ACA Affordability Limit | 3% of taxable income (Premiums less than $38* per month) |
4% of taxable income (Premiums less than $57* per month) |
6.3% of taxable income (Premiums less than $121* per month) |
9.5% of taxable income (Premiums less than $273* per month) |
9.5% of taxable income (Premiums less than $364* per month) |
|||||
* Benchmark plan is the second least expensive silver level plan available in the individual or family's area. ** Estimated Federal Poverty Levels for the 48 contiguous states and Washington DC |
"The relative affordability of qualified health plans is a win for the Affordable Care Act," said
According to eHealth's analysis of premium data for qualified health plans released by the
- Nationally, individuals at an income of less than
$41,500 in 2014 will be eligible to apply for a government subsidy - The national average monthly premium for the second-lowest-cost silver plan (the benchmark plan for any given area) is$328 . At that price, subsidies would be available for single consumers earning less than 361% of the Federal Poverty Level -- approximately$41,500 in annual adjusted gross income (National average, may not be the case in all states). - Nationally, individual young adults (age 27) at an income of less than
$30,500 in 2014 will be eligible to apply for a government subsidy - The national average monthly premium for the second-lowest-cost silver plan is just$216 for a single 27-year-old. At that price, subsidies would be available for those earning less than 265% of the Federal Poverty Level -- approximately$30,500 in annual adjusted gross income (National average, may not be the case in all states).
In addition to analyzing premium data for states where exchanges are being run, at least in part, by the federal government, eHealth also completed a similar analysis for some of the states building their own exchanges.
According to this analysis:
California : For a single 27-year-old inCalifornia , the average monthly premium for the second-lowest-cost silver plan is$242 . At that price, an individual would become eligible for a government subsidy if he/she earns less than$32,400 in annual adjusted gross income (282% of the Federal Poverty Level).New York : For a single 27-year-old inNew York , the average monthly premium for the second-lowest-cost silver plan is$349 . At that price, an individual would become eligible for a government subsidy if he/she earns less than$44,100 in annual adjusted gross income (384% of the Federal Poverty Level).Washington (premium data fromSeattle ): For a single 27-year-old inSeattle, Washington , the average monthly premium for the second-lowest-cost silver plan is$204 . At that price, an individual would become eligible for a government subsidy if he/she earns less than$29,600 in annual adjusted gross income (258% of the Federal Poverty Level).Maryland (premium data fromBaltimore ): For a single 27-year-old inBaltimore, Maryland , the average monthly premium for the second-lowest-cost silver plan is$197 . At that price, an individual would become eligible for a government subsidy if he/she earns less than$29,070 in annual adjusted gross income (253% of the Federal Poverty Level).Washington D.C. : For a single 27-year-old inWashington D.C. , the average monthly premium for the second-lowest-cost silver plan is$180 . At that price, an individual would become eligible for a government subsidy if he/she earns less than$27,921 in annual adjusted gross income (243% of the Federal Poverty Level).
Under the Affordable Care Act, in most states, insurers can only increase a non-tobacco user's premiums based on their age. As such, in most states, younger people pay less than older people. In
The table below details subsidy eligibility data for tobacco-free individuals in five states that are building their own exchanges. The chart estimates the "Breakeven Federal Poverty Level (BFPL)" -- the point at which an individual's income makes insurance unaffordable, under the law, at age 21 and age 27. The chart also shows the age at which the average individual premium becomes unaffordable, under the law, at 400% FPL (Unaffordable at 400% FPL).
State |
Age | Silver Premium | Breakeven FPL% | Income | ||||
CA* | 21 | $231.20 | 276 | $31,712 | ||||
27 | $242.29 | 282 | $32,402 | |||||
Unaffordable at 400% FPL | 48 | $378.00 | > 400 | >$46,000 | ||||
MD | 21 | $187.57 | 247 | $28,380 | ||||
27 | $196.57 | 253 | $29,070 | |||||
Unaffordable at 400% FPL | 52 | $366.14 | 401 | >$46,000 | ||||
Washington DC* | 21 | $180.50 | 243 | $27,921 | ||||
27 | $180.50 | 243 | $27,921 | |||||
Unaffordable at 400% FPL | 51 | $369.16 | 401 | >$46,000 | ||||
NY* | 21 | $349.00 | 384 | $44,122 | ||||
27 | $349.00 | 384 | $44,122 | |||||
Unaffordable at 400% FPL | 64 | $349.00 | 384 | $44,122 | ||||
WA (Seattle Metro Area) |
21 | $195.22 | 252 | $195.22 | ||||
27 | $204.59 | 258 | $204.59 | |||||
Unaffordable at 400% FPL | 51 | $364.08 | 401 | >$46,000 | ||||
*Tobacco use is not used for underwriting purposes in New York, California and Washington DC. |
The table below details subsidy eligibility data for non-smokers in the 36 states that are not building their own exchange. The chart estimates the "Breakeven Federal Poverty Level (BFPL);" the point at which an individual's income makes insurance unaffordable, under the law, at age 21 and age 27. The chart also shows the age at which the average individual premium becomes unaffordable, under the law, at 400% FPL (Unaffordable at 400% FPL).
State |
Age | Silver Premium | Breakeven FPL% | Income | ||||
AK | 21 | $297.71 | 328% | $37,687 | ||||
27 | $312.00 | 343% | $39,411 | |||||
Unaffordable at 400% FPL | 35 | $363.80 | 400% | $45,960 | ||||
AR | 21 | $229.96 | 275 | $31,598 | ||||
27 | $241.00 | 282 | $32,402 | |||||
Unaffordable at 400% FPL | 48 | $375.99 | 401 | >$46,000 | ||||
DE | 21 | $226.15 | 272 | $31,253 | ||||
27 | $237.00 | 279 | $32,057 | |||||
Unaffordable at 400% FPL | 48 | $369.75 | 401 | >$46,000 | ||||
GA | 21 | $210.88 | 263 | $30,219 | ||||
27 | $221.00 | 269 | $30,908 | |||||
Unaffordable at 400% FPL | 50 | $376.63 | 401% | >$46,000 | ||||
ID | 21 | $179.39 | 242 | $27,806 | ||||
27 | $188.00 | 248 | $28,495 | |||||
Unaffordable at 400% FPL | 53 | $365.95 | 401% | >$46,000 | ||||
IN | 21 | $252.86 | 289 | $33,206 | ||||
27 | $265.00 | 296 | $34,010 | |||||
Unaffordable at 400% FPL | 45 | $365.13 | 401 | >$46,000 | ||||
LA | 21 | $237.60 | 280 | $32,172 | ||||
27 | $249.00 | 286 | $32,861 | |||||
Unaffordable at 400% FPL | 47 | $371.36 | 401 | >$46,000 | ||||
MI | 21 | $192.75 | 251 | $28,840 | ||||
27 | $202.00 | 257 | $29,529 | |||||
Unaffordable at 400% FPL | 52 | $376.24 | 401 | >$46,000 | ||||
MS | 21 | $281.49 | 310 | $35,619 | ||||
27 | $295.00 | 325 | $37,343 | |||||
Unaffordable at 400% FPL | 41 | $366.50 | 401 | >$46,000 | ||||
NC | 21 | $231.87 | 276 | $31,712 | ||||
27 | $243.00 | 283 | $32,517 | |||||
Unaffordable at 400% FPL | 48 | $379.11 | 401 | >$46,000 | ||||
NE | 21 | $196.56 | 253 | $29,070 | ||||
27 | $206.00 | 259 | $29,759 | |||||
Unaffordable at 400% FPL | 51 | $366.59 | 401 | >$46,000 | ||||
NJ | 21 | $248.09 | 286 | $32,861 | ||||
27 | $260.00 | 293 | $33,666 | |||||
Unaffordable at 400% FPL | 46 | $372.14 | 401 | >$46,000 | ||||
OH | 21 | $202.29 | 257 | $29,529 | ||||
27 | $212.00 | 263 | $30,219 | |||||
Unaffordable at 400% FPL | 51 | $377.27 | 401 | >$46,000 | ||||
SC | 21 | $212.79 | 264 | $30,334 | ||||
27 | $223.00 | 270 | $31,023 | |||||
Unaffordable at 400% FPL | 49 | $363.01 | 400 | $45,960 | ||||
TN | 21 | $153.63 | 225 | $25,853 | ||||
27 | $161.00 | 230 | $26,427 | |||||
Unaffordable at 400% FPL | 55 | $378.03 | 401 | >$46,000 | ||||
UT | 21 | $146.04 | 219 | $25,163 | ||||
27 | $203.00 | 257 | $29,529 | |||||
Unaffordable at 400% FPL | 52 | $378.11 | 401 | >$46,000 | ||||
WI | 21 | $227.10 | 273 | $31,368 | ||||
27 | $238.00 | 280 | $32,172 | |||||
Unaffordable at 400% FPL | 48 | $371.31 | 401 | >$46,000 | ||||
WY | 21 | $326.34 | 359 | $41,249 | ||||
27 | $342.00 | 376 | $43,202 | |||||
Unaffordable at 400% FPL | 29 | $365.17 | 401 | >$46,000 | ||||
AL | 21 | $199.43 | 255% | $29,300 | ||||
27 | $209.00 | 261% | $29,989 | |||||
Unaffordable at 400% FPL | 51 | $371.93 | 401% | >$46,000 | ||||
AZ | 21 | $158.40 | 228% | $26,197 | ||||
27 | $166.00 | 233% | $26,772 | |||||
Unaffordable at 400% FPL | 56 | $369.54 | 401% | >$46,000 | ||||
FL | 21 | $208.02 | 261 | $29,989 | ||||
27 | $218.00 | 267 | $30,678 | |||||
Unaffordable at 400% FPL | 50 | $371.52 | 401% | >$46,000 | ||||
IA | 21 | $180.34 | 243 | $27,921 | ||||
27 | $189.00 | 248 | $28,495 | |||||
Unaffordable at 400% FPL | 53 | $367.90 | 401% | >$46,000 | ||||
IL | 21 | $179.39 | 242 | $27,806 | ||||
27 | $188.00 | 248 | $28,495 | |||||
Unaffordable at 400% FPL | 53 | $365.95 | 401 | $365.95 | ||||
KS | 21 | $163.17 | 231 | $26,542 | ||||
27 | $171.00 | 237 | $27,231 | |||||
Unaffordable at 400% FPL | 55 | $363.86 | 401 | >$46,000 | ||||
ME | 21 | $252.86 | 289 | $33,206 | ||||
27 | $265.00 | 296 | $34,010 | |||||
Unaffordable at 400% FPL | 45 | $365.13 | 401 | >$46,000 | ||||
MO | 21 | $209.92 | 262 | $30,104 | ||||
27 | $220.00 | 269 | $30,908 | |||||
Unaffordable at 400% FPL | 50 | $374.92 | 401 | >$46,000 | ||||
MT | 21 | $198.47 | 254 | $29,185 | ||||
27 | $208.00 | 261 | $29,989 | |||||
Unaffordable at 400% FPL | 51 | $370.15 | 401 | >$46,000 | ||||
ND | 21 | $221.37 | 269 | $30,908 | ||||
27 | $232.00 | 276 | $31,712 | |||||
Unaffordable at 400% FPL | 49 | $377.66 | 401 | >$46,000 | ||||
NH | 21 | $226.15 | 272 | $31,253 | ||||
27 | $237.00 | 279 | $32,057 | |||||
Unaffordable at 400% FPL | 48 | $369.75 | 401 | >$46,000 | ||||
NM | 21 | $177.48 | 241 | $27,691 | ||||
27 | $186.00 | 246 | $28,265 | |||||
Unaffordable at 400% FPL | 54 | $378.92 | 401 | >$46,000 | ||||
OK | 21 | $166.98 | 234 | $26,887 | ||||
27 | $175.00 | 239 | $27,461 | |||||
Unaffordable at 400% FPL | 55 | $372.38 | 401 | >$46,000 | ||||
SD | 21 | $224.24 | 271 | $31,138 | ||||
27 | $235.00 | 278 | $31,942 | |||||
Unaffordable at 400% FPL | 48 | $366.63 | 401 | >$46,000 | ||||
TX | 21 | $191.79 | 250 | $28,725 | ||||
27 | $201.00 | 256 | $29,414 | |||||
Unaffordable at 400% FPL | 52 | $374.38 | 401 | >$46,000 | ||||
VA | 21 | $210.88 | 263 | $30,219 | ||||
27 | $221.00 | 269 | $30,908 | |||||
Unaffordable at 400% FPL | 50 | $376.63 | 401 | >$46,000 | ||||
WV | 21 | $208.02 | 261 | $29,989 | ||||
27 | $218.00 | 267 | $30,678 | |||||
Unaffordable at 400% FPL | 50 | $371.52 | 401 | >$46,000 |
Methodology
The data presented in this analysis is an estimate, based on data provided by the
The Databook also provides statewide weighted average premium data in four states (
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