A recent study has found that middle class individuals and families–those earning annual incomes from 200% to 300% of the federal government’s poverty level–are those who have suffered the most from rising health insurance premiums over the past decade.
Since 1998, wages have remained largely stagnant. Meanwhile, the cost of health care has continued to skyrocket. Employers have decided to transfer more of the cost of coverage to workers. An increasing percentage of the middle class are unable to afford the 65 and 81 percent increase in employee contributions for individual and family health insurance coverage, respectively.
Unable to afford the out-of-pocket cost of coverage, 21 percent of middle-class employees refused group health insurance in 2008. In addition, 12% of employers no longer offered coverage. As a result, 16.2% of middle class households (considered as earning ,000 to ,000 for a family of four) are uninsured.
Middle class households are in a double bind: although the poor are still twice as likely to be uninsured, they are eligible for government-sponsored health insurance plans like Medicaid. On the other hand, those earning over 400% of the poverty level are better able to afford the increased co-payments, deductibles, and premiums. Their uninsurance rates rose only 0.8 and 1 percent, respectively. By contrast, the middle class’ uninsurance rate increased by over two percent.
Proponents of affordable health insurance reform contend that the law will allow more middle class Americans to afford coverage. Many of them will be eligible for tax credits and subsidies to buy a plan on strictly regulated exchange markets. It is unknown whether the premiums will be less expensive than the portion most employees must pay for their group plans. This will be helpful at a time when median household income has fallen by 2.5 percent.
Tags: affordable health insurance, annual incomes, family health insurance, group health insurance, health insurance coverage, health insurance plans, health insurance premiums, health insurance reform, median household income, rising health insurance