The deductible is burdensome.
In what follows, I wonder:
How many weeks of work is required to meet the average insurance deductible if 100% of after-tax income was directed to your health bill?
An answer:
Commentary
According to the Kaiser Family Foundation’s Employer Health Benefits Annual Survey, the average deductible for an individual was $1,570 in 2018. This refers to the amount you pay for covered services before insurance begins to work.
Many factors influence this threshold. For those obtaining individual coverage, the size of your employer matters; larger firms typically get better deals. For family coverage, the 2018 average ranges from $2,300-$3,500 for regular insurance plans (HMO, PPO, POS), while high-deductible plans (HDHP) were $4,675.
Why does this matter? Because you have to pay the entirety of it when you get sick. Hospitalizations - heck, many emergency department visits, commonly result in bills in excess of the deductible.
We recognize that nobody is able to devote 100% of income to a healthcare bill when you have housing, food, and other necessities. We just want to keep it real and show how employer-sponsored insurance doesn’t work for us. For me, I’ll refrain from the emergency department when it costs me 2.5 to 5.0 weeks of wage!
Assumptions:
250% Federal Poverty Level, in 2018: $31k individual, $64k family
Residence: Cobb County, GA
Standard deduction, 10% pre-tax income to retirement
Individual = 1 exemption, family = 2 dependents