Several independent organizations, including the Kaiser Family Foundation, have released new data on the expected cost of heath insurance under the Affordable Care Act regulations soon to go into effect. In their view, most families have an unrealistic expectation of how much assistance they will receive in government subsidies and are not aware of how much health insurance will continue to cost.
A family of four with a household income of $75,000 should expect to pay $7,125 in premiums and $8,333 in cost share for a total of nearly $15,500 per year. The federal government will spend around $1.16 trillion over the next decade to subsidize insurance costs, but these subsidies phase out at relatively low levels of income. Families earning up to 138 percent of the poverty line ($33,000 today for a family of four) can expect minimal out of pocket costs. The subsidy goes down as income goes up, with those making around $44,000 receiving a subsidy equal to 13 percent of the insurance cost and no subsidies available for families earning above 400 percent of the poverty line ($92,000 for a family of four). Around 5 million families will be required by law to purchase health insurance but will earn too much to qualify for a subsidy.
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