FOR LOW-INCOME PEOPLE, EMPLOYER HEALTH COVERAGE WORSE THAN ACA

As the Affordable Care Act continues to be dismantled, more studies are showing that health insurance is much less affordable for lower income individuals who are able to get covered at work than it is for their counterparts with similar incomes.

Details: A low-income family with a marketplace plan pays 8.4% of their income on premiums and out-of-pocket costs, compared to 14% for a lower-wage family with employer coverage (those with incomes below twice the poverty level).

The Break Down:

  • For low-income families with marketplace plans, the out-of-pocket costs are 4.7% of their income, while the premiums are just 3.7% of their income.
  • For those with coverage through work, the out-of-pocket costs are 5% of their income, roughly the same as the families with marketplace plans.
  • The big difference is in the premiums — because the low-income families with workplace coverage pay about 9% of their income to cover those payments.

What It All Means: Employer-based coverage is significantly the largest source of health insurance and it now provides the least financial protection for lower income workers who need it the most