Many families – especially those with low to moderate incomes – don’t have sufficient savings to cover a mid- or larger deductible in a private plan, according to an analysis by the Kaiser Family Foundation.
The study found that less than two-thirds (63%) non-elderly households with incomes above the federal poverty level have sufficient liquid financial assets to cover a mid-range annual deductible $1,200 for an or $2,400 for a family. The average annual deductible for single in an -based plan was $1,217 in 2014.
About half (51%) households have enough liquid assets to cover a higher-range annual deductible $2,500 for an or $5,000 for a family.
In the 2015 offered through , the average combined medical and drug deductible for single in a silver plan was $2,556.
In moderate-income households, 62% have sufficient liquid financial assets to cover a mid-range deductible, compared to 38% that do not. Less than half (46%) have enough to cover a higher-range deductible. These households have incomes between 250% and 400% the federal poverty level, or between $29,425 and $47,080 for an .
Households with incomes above 400% the poverty level are not eligible for government -sharing subsidies that can significantly reduce deductibles and other out–pocket expenses for purchased in the Act’s marketplaces.
Among lower-income households, a third (32%) have sufficient liquid financial assets to cover a $1,200 deductible for an or a $2,400 deductible for a family. One in five (20%) have enough to cover an annual deductible $2,500 for an or $5,000 for a family.
This has income between 100% and 250% the poverty level, or $11,770 to $29,425 for an . These households may be eligible for -sharing subsidies through marketplaces if they are not offered .
The study used information from the Federal Reserve Board’s 2013 Survey Consumer Finance to compare the liquid financial assets households with a range incomes to -sharing amounts that are representative offered by or available in the market, including in the marketplaces.