The Affordable Care Act: Is it Affordable?

Since the Affordable Care Act was passed and implemented, one of the main criticisms regarding it has revolved around the concept of “affordability”. It is true that rates for health insurance have increased by about 400 percent over the past five years, BUT….

Here’s the “affordability” part.

First, it’s important to understand how your rates are actually determined. Premiums are based on a number of factors, including… 

• family size (Will you need an Individual plan, a plan for couples, or a family plan?)
• where you live
• how old you are
• your income

Let’s pretend that you’re a family of four, and you earn about $60,000 per year. You will receive a discount for your premiums, at about 50 percent, that is paid directly to the insurance company. This discount is provided through something called an APCT, which is a tax funded subsidy aimed at lowering health insurance premiums.

On the other hand, a family of four with an income of $250,000 is going to pay, more out of pocket, than the family in the above example. Therefore, the “affordability” part of the Affordable Care Act was aimed at creating a more even playing field, so that everyone can afford health insurance.

We have had the pleasure of helping young families, who otherwise might not be able to afford health insurance, to secure a health care plan for their families. Often these families are able to provide security and health care for their children, for the first time in years. And at the end of the day, isn’t that what we all want?

If you aren’t sure whether you can afford health insurance for your family, please don’t hesitate to call us. We can explain how the subsidies work, and help you discover how much help you could receive toward your own health insurance premiums.