Does Affordable Care Ultimately Exclude Children From Health Care?

The IRS New Definition Of Affordable Care May Leave Kids Without Health Care

Health Insurance For The FamilyA new definition imposed by the IRS on what is “affordable health care” may actually leave many modest income families ineligible for federal subsidies, even if the cost of health insurance eats up more than 10% of their family’s income.  The IRS recently decided that when they examine the “affordability” of a plan, they will only examine the cost for the employee, not the cost for the family.  If the cost for the employee him/herself is less than 9.5% of the family’s income, then health care subsidy will be denied.  The problem with this is, family health care plans usually raise the premiums astronomically.  The average premium for an individual is only $951/year, whereas for a family that number exceeds $4,316; for a family making a modest income of $35,000/year that eats up over 12% of their total income.  With many companies the employee him/herself costs next to nothing for health insurance, but the family adds several hundred dollars per month onto that total.

No Kids Left Behind, Affordable Care Leaves Children Without Health Insurance

One of the many laws included in the Affordable Care Act, is that Americans who do not have health insurance will face a hefty fine by the IRS.  However, the IRS will examine the total cost of a family’s health insurance and will exempt them from the fine if the total cost of health care exceeds 9% of the family’s income.  So when it comes to paying fine, the IRS examines the total cost, but when it comes to paying a subsidy only the cost of the employee is reviewed.  What ultimately will end up happening, is children who desperately need well child checks, vaccines, and other health care access, will be without health insurance.  If a parent has to decide between putting food on the table and paying to keep a roof over their family’s heads, then health care will unfortunately be neglected.

We Are Paying Millions Of Dollars For No Change In Access To Health Care

Unfortunately, the expense to run and manage affordable care is going to be astronomical for our debt load in this country, and does not appear to truly increase access to care for those who may need it the most.  Modest earners in this country are going to take a sock to the gut.  For more information on the affordable care act and how it may impact the economy and your personal finances and tax liability, visit and contact a Redhawk Financial Advisor near you today.

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