Well, if you are not covered by your employer, it is doubtful that you and your family can afford medical insurance. That is the result of a recent study sponsored by the department of health and Human Services.
Even those with incomes over the federal poverty line have difficulty with the cost of medical insurance. Right now, it is estimated that 23.8 million Americans under age 65 are uninsured. The study examined the net worth of families, and not just their income. The study showed a huge difference in the median net worth of families who had insurance compared with those who do not. The median net worth of those who do have insurance was $105, 818 compared to those families uninsured, whose net worth was $3,057. It seems like common sense, but the study pointed out that net worth should be the key to determining if someone will be able to afford medical insurance instead of just income based. However simple this conclusion might be, it would be helpful information to law makers so that adjustments can be made to help all individuals be able to afford health insurance.
Other information shows that 3 out of 4 people who try to obtain insurance through an individual private insurance market did not get a policy, mostly due to the fact that it was unaffordable. The premiums could be $3000 or more a year, and out of pocket expenses would top $6000. This is about $4000 a year more than someone with employer based insurance would spend.
Economists believe that there is a strong correlation between rising health insurance costs and the number of uninsured individuals. Another recent study found that in 2007, 62% of all bankruptcies filed were associated with medical expenses. The sad thing here is that 80% of those individuals did have medical insurance, but their portion and responsibility was still overwhelming. Many families who lose their homes to foreclosure do so because of unaffordable medical costs as well.
Reference:
New Study Finds Fewer Families Can Afford Health Insurance. Press Release, May 8, 2009. Agency for Healthcare Research and Quality, Rockville, MD. http://www.ahrq.gov/news/press/pr2009/faminspr.htm
The Commonwealth Fund, news release, July 21, 2009
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