Click to access PDF%20BalancingAffordableCoveredCa.pdf

http://www.chcf.org/publications/2016/06/balancing-affordable-covered-ca?_cldee=aGVucnlrb3R1bGFAeWFob28uY29t

Subsidies offered through the health insurance marketplaces established under the Affordable Care Act (ACA) have reduced the cost of health insurance for millions of Californians. Subsidy amounts, however, are set nationally and do not take into account the local cost of living, which varies dramatically across the state.

Even with the help of subsidies, many Californians struggle to afford coverage through Covered California, the state’s health insurance marketplace, especially those living in areas where a high cost of living already strains household budgets.

In this analysis, researchers identified an affordability threshold — the minimum amount a typical household would need to earn to have sufficient funds to cover their basic needs and Covered California premiums and out-of-pocket costs after federal subsidies.

The affordability threshold varied widely by county, mostly due to the local cost of living, but in every county it fell above the maximum income to qualify for Medi-Cal as an adult (138% of the federal poverty level or $33,543 for a family of four or $16,395 for one person). This suggests that in every California county, there are families and individuals — specifically those earning above 138% of FPL and below the local affordability threshold — who are falling into an affordability gap. They earn too much for Medi-Cal but not enough to afford health insurance through Covered California, even with subsidies.