A 28% premium increase would make health insurance unaffordable for the
average middle-class family of three with an annual household income
between $82,000 and $166,000
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jun. 22, 2017--
A new analysis conducted by eHealth Inc., (NASDAQ:EHTH), finds that
projected rate increases for 2018 health insurance plans would make
health insurance unaffordable, according to the rules of the Affordable
Care Act (the ACA or Obamacare), for 29% of individuals and 54% of
families who bought their health insurance at eHealth during the 2017
open enrollment period. eHealth operates eHealth.com,
the nation’s first online health insurance exchange.
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 Oliver Wyman Health, which projected
rate increases would range from 28% to 40% for 2018 health insurance
plans.
With a 28% premium increase, the lowest cost bronze plan available in
2018 will cost the average unsubsidized family of three $1,126 a month,
which is unaffordable under ACA guidelines until the family’s household
income reaches $166,245.
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 Scott Flanders, CEO of eHealth. “Obamacare made real
improvements in the individual health insurance market by increasing
access to health care for millions of Americans, but it has proven to be
a deeply flawed piece of legislation that needs to be repaired or
replaced in order to help people stay covered.”
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 Ian Kalin said: “It is clear from eHealth’s
customer analysis that entire segments of consumers are negatively
impacted by health care’s unaffordability. I’m very concerned about
those middle-class families that are being priced out of the individual
health insurance market.”
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 contiguous United 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 contiguous United 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 contiguous United 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 contiguous United 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
eHealth, Inc. (NASDAQ:EHTH) owns eHealth.com, a
leading private online health insurance exchange where individuals,
families and small businesses can compare health insurance products from
leading insurers side by side and purchase and enroll in coverage
online. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District
of Columbia. eHealth also offers educational resources and powerful
online and pharmacy-based tools to help Medicare beneficiaries
navigate Medicare health insurance options, choose the right plan and
enroll in select plans online through Medicare.com (www.Medicare.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and PlanPrescriber.com (www.PlanPrescriber.com).
For more health insurance news and information, visit eHealth's Consumer
Resource Center.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170622005375/en/
Source: eHealth Inc.
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