PostHeaderIcon Is PPACA really affordable? Part 2…

The premium rates of the metal named plans vary by states based on family status, age, region, and income. For example the estimated Connecticut health insurance exchange premium rates for a couple in their mid 30’s, living in Fairfield County is listed below:

CT Rates

The estimated premiums in Connecticut for a couple in their mid 50’s would be:

CT Rates

(For other age groups and estimated premium rates, please visit the Connecticut Health Insurance Exchange website)

The estimated monthly premium rates vary between the younger and older couples, $570.04-938.76 and $1,119.91-1,844.32 respectively. Depending on the plan chosen, the deductible ranges between $2,000 to $12,600. As a general rule, the higher premium rates tend to have lower deductibles.

The given plan’s deductible need to be met, prior to the insurance company paying for any medical bills. The sole exception is preventive care, that is covered in full for all these policies without consideration of deductibles.

The total yearly cost is calculated as ((MP x 12)+AD). As such, the total cost amounts to for the younger couple 12-19%, and for the older couple 20-26% of their respective income. The  cost of the various plans is based on $100,000/year total income for both couples.

The question is: can they afford spending roughly 20% of their income for getting health insurance through the exchange?

That depends whom you ask? Based on the current median income level in Connecticut, about $70,000/year, the chances are that people at this income or lower levels cannot afford purchasing these plans. Certainly, there are people who can and they will purchase health insurance at the CT exchange. There are people who makes less than the median income level, who cannot afford these premium rates.

The Affordable Care Act specified provisions for providing federal assistance for people, whose yearly income is at or below 400% of the federal poverty level.

In the Is PPACA really affordable? Part 3… blog, we’ll look at the PPACA mandated exchange premium rates for people, whose income at or below the federal poverty level…

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