How will lower-income families fare in the new health exchange?

Campaigns

Dedicated to affordable, quality healthcare and coverage for all Americans.

By Consumers Union on Wednesday, August 19th, 2009

Affordability Credits are available to lower the cost of coverage purchased through the exchange. Information about a family’s income and size is used to determine whether the family qualifies for the credits and if so, what type of contribution the family is expected to make.

In this example, Beth has a family of three. Her income of $34,000 means that her family is well within the income threshold that qualifies a 3-person family for help ($73,200 per year).

According to the House proposal, Beth would be expected to contribute a little more than 4% of her income to this coverage. Families with higher incomes or fewer children would be expected to pay more; larger families or those with lower incomes would be expected to pay less.

Beth’s income Percent of Income to be Paid Towards Coverage (varies according to income and family size) Beth Pays per Year Beth pays per Month
$34,000 4.4% $1,500 $125

If the total cost of coverage in the area where Beth lives is $10,000 for her and her two kids, then the “credits” available through the exchange would pay the balance–roughly $8,500.

Click here to find out more about how a family like Beth’s would fare under the proposed reform bills.


In this example, Mia is a family of one. Her income of $20,000 means that she is well within the income threshold that qualifies single people for help ($43,300 per year).

According to the House proposal, Mia would be expected to contribute a little more than 4% of her income to this coverage. Singles with higher incomes would be expected to pay more; larger families or those with lower incomes would be expected to pay less.

Mia’s income Percent of Income to be Paid Towards Coverage (varies according to income and family size) Mia Pays per Year Mia pays per Month
$20,000 4.4% $875 $73

If the total cost of coverage in the area where Mia lives is $6,000 for someone her age, then the "credits" available through the exchange would pay the balance–roughly $5,125.

Click here to find out more about how someone like Mia’s would fare under the proposed reform bills.


In this example, Brian is a family of one. His income of $16,000 means that he is well within the income threshold that qualifies single people for help ($43,300 per year).

According to the House proposal, Brian would be expected to contribute about 3% of his income to this coverage. Singles with higher incomes would be expected to pay more; larger families or those with lower incomes would be expected to pay less.

Brian’s income Percent of Income to be Paid Towards Coverage (varies according to income and family size) Brain Pays per Year Brian pays per Month
$16,000 3.0% $480 $40

If the total cost of coverage in the area where Brain lives is $6,000 for someone his age, then the “credits” available through the exchange would pay the balance–roughly $5,520.

Click here to find out more about how someone like Brain’s would fare under the proposed reform bills.

Leave a Reply

Your email address will not be published. Required fields are marked *