By Pension and Benefits Editorial Staff
Employer-sponsored health coverage is less affordable for low-income workers than for individuals with similar incomes that purchase coverage through the Patient Protection and Affordable Care Act (ACA)-created marketplaces, according to a recent study from the Kaiser Family Foundation. The study found that a low-income family with a marketplace plan pays 8.4 percent of their income on premiums and out-of-pocket costs, compared to 14 percent for a lower-wage family with employer coverage.
The study found the following:
- For low-income families with marketplace plans, the out-of-pocket costs are 4.7 percent of their income, while the premiums are 3.7 percent of their income.
- For those with coverage employment-based coverage, the average out-of-pocket costs are 5 percent of their income, roughly the same as the families with marketplace plans.
- The big difference is in the premiums—because the low-income families with workplace coverage pay about 9 percent of their income to cover those payments.
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