Numerous health programs have helped millions of families across the US to get their only chance to purchase health insurance. Despite the recent calls to eliminate the Affordable Care Act, it is vivid that the program stays one of the few options available for a substantial number of Americans. Moreover, the COVID-19 pandemic and the following socioeconomic crisis will influence the incomes of most citizens. Therefore, the analysis of the advantages and the scale of the financial help the Marketplace coverage provides is central to realizing the best solutions for the healthcare programs’ future functioning.
Using the Health Insurance Marketplace Calculator
In New York, the family’s income is 210% of the poverty level, which means that the family is eligible for financial help. The poverty level for Marketplace coverage is $26,200 for a family of 4. Medicaid provides a sophisticated program that represents the efforts of both the Federal government and the states to provide free health care for people with low income.
If the family decides to enroll in a silver plan, it will pay about $315 a month, which equals 6.88% of the annual income. This means that the subsidy is $1,443 per month and covers 82% of this family’s monthly costs. If a family decides to enroll in a bronze plan, it will not have to pay anything. Therefore, without this type of financial help, this family will have to pay $1,758 per month.
A similar family living in Alaska will receive $1,587 per month as a subsidy, which means that it will cover 87% of the monthly costs. The cost of a silver plan, in this case, is $229 per month. The family will have to spend only 4.99% of their income on insurance (Kaiser Family Foundation, 2020). Moreover, the same income in Alaska equals to 168% of the poverty level. Thus, the cost of insurances obtained through the Marketplace coverage varies significantly from state to state, as the plans can be different.
The state legislation may also alter the way the annual income per person is counted in the case of the Health Insurance Marketplace. Medicaid premiums, in general, fluctuate between various states as well. A person has to choose one plan that is available in the area where he/she lives. Nevertheless, there is a Special Election Period that can help make the transition easier if a person decides to move.
In case the income of the family living in New York increases by $1,000, the estimated financial help will decrease to $1,431 per month, the cost for a silver plant will be $328 per month. The family will have to spend 7.02% of its income on a silver plan. At the same time, the silver plan without financial help will still cost $1,758 per month. If this family’s income increases by $10,000, it will be equal to 248% of the poverty level. Therefore, the family will have to pay $447 for a silver plan per month, which will represent 8.26% of its income. The cost of the silver plan without financial help will still be $1,758 per month.
The Role of Healthcare Programs
There has always been a strong bond between government, economy, politics, and healthcare. For instance, Medicaid has grown from 1% to 3% of GDP since 1965 (Sutter, 2016). Numerous politicians are determined in their desire to eliminate some of the programs that make healthcare more affordable. Nevertheless, the government saves only 46 cents for every dollar cut in Medicare spending, and the majority of the current population in general benefits from the existence of such programs in various ways (Conesa et al., 2018).
Moreover, America remains the only wealthy country that does not provide truly affordable healthcare to the entire population. Thus, healthcare programs and initiatives do make a difference. In order to have a silver plan, an average family is expected to spend 200-400 dollars monthly through the Marketplace coverage, which is substantially lower than the $1,500 without needed without financial help. Moreover, the fact that the bronze plan is free contributes to the wellbeing of millions of people.
Although the costs of insurances subsidized by the government are manageable, it is still risky for any person who can lose a job. It has recently become a serious issue, as a huge number of families have lost their only reliable income streams. Thus, the program and the healthcare system, in general, should be altered in a way that eliminates the necessity to pay several hundred dollars monthly if the primary aim is affordable healthcare for everyone. Currently, various events in one’s life may leave a person without access to some of the crucial health services.
I believe that Medicaid is one of the major truly humane policies that enhance the living standards of millions of Americans who cannot choose any other option. The website that has been utilized to complete this work serves as a great tool that helps people realize the opportunities they have to provide affordable healthcare for the entire family. Moreover, the number of settings and the preciseness of information make it an outstanding source, as any person can learn the exact financial aid figures depending on the number of family members, income, and location.
Conesa, J. C., Costa, D., Kamali, P., Kehoe, T. J., Nygard, V. M., Raveendranathan, G., & Saxena, A. (2018). Macroeconomic effects of Medicare. The Journal of the Economics of Ageing, 11(5), 27–40. Web.
Kaiser Family Foundation. (2020). Health insurance marketplace calculator. Web.
Sutter, D. (2016). The political economy of Medicaid expansion: Federalism, interest groups, and the ACA. Mercatus Working Paper, 6, 1–41. Web.