[Page: E247]---
On average the American family is estimated to pay $5,700 for health insurance premiums, a large share of the income that is needed to maintain the family household. In general, a tax credit of only $2,000 will not be able to cover the costs that a poor family will need to provide affordable health care insurance. The survey conducted shows that both of the tax credits, one for individuals and one for families, falls short of eliminating the need for guaranteed health coverage for the poor.
In more than 90% of the survey, we found that the tax credits would still leave each near poor individual or family with a large balance left to pay. In Fairfax County a 25 year old couple with 2 children after a $2,000 credit is still left with a $1,400 bill to pay, while in Alachua County (Gainesville) Florida the bill is almost $2,000. Even in rural Colfax, Nebraska within the same age bracket, there is still a balance that needs to be met. Couples without children face the same problem in that the range of balances run from full coverage for a 25 year old Nebraska couple to an almost $500 balance for the same 25 year old couple in Alachua County, Florida. For a single, 25 year old male living in either Rural Nebraska or Fairfax, Virginia, the $1,000 credit will cover his health coverage in full. However, for men over the age of 35 and women of all ages (in all four counties examined in this survey) the individual tax credit leaves a range of balances from $32 (25 year old female in California) to $3,570 (60 year old female in Florida).
As you get older, the price of health coverage steadily increases. For example in Los Angeles, Calif. the yearly premium rates that have been quoted for a 35 year old single man have nearly doubled once the individual has reached the age of 60 ($1,284 versus $2,184 per year). In the three remaining counties, yearly rates have tripled on average from $1,300 to $3,700 from age 35 to 60, respectively.
In only six out of 120 scenarios mapped out (30 quotes for each state) did this proposed tax credit eliminate the burden of health costs. That means only 5% of the time did the tax credit insure a poor individual or family. Given this data, then these proposed tax credits will only guarantee help to 2.2 million of the 44 million uninsured Americans, not the 21.9 million that is being estimated by the drafters of this bill.
This survey was conducted using an Internet access program called Quotesmith.com. Quotesmith generated quotes for health insurance rates based upon the type of individual or family entered. This survey looked at how much standard health coverage would cost for individuals, couples, couples with children, and retired persons around the country. The criterion for the health insurance premium was a $250+nearest deductible and any policy that pays 80% or more after the deductible has been met. Note these are quotes off the Internet. They are not actual purchases of policies, and do not reflect any increases in rates caused by medical underwriting. In many cases we can expect that the final quote will be higher.
Premiums were studied for individuals who lived in Fairfax County, Virginia; Alachua County, Florida; Los Angeles County, California; and rural Colfax County, Nebraska.
[Page: E248]
As stated earlier a $1000 tax credit for an older individual is simply not enough. There is no way that such a working poor individual can come close to affording private, individual health insurance, without having to decide whether to forgo basic needs.
The $2,000 tax credit that this bill is proposing for families is even more unrealistic. In not one instance does this credit eliminate the problem of cost. The lowest rate for a family with two children is $205 per month, while the tax credit offers only $167 per month leaving a gap of about $38 per month.
What also becomes very apparent is the fact that as one gets older the
premium rates are rising. Therefore, a single 25 year old male can expect to
spend about $100 a month on health insurance, whereas a 60 year old man can
expect to pay about $250 a month or $3000 a year for his insurance! Once again
how can a tax credit of only $1000 provide any relief for the near poor?
The following medical insurance rates are based upon: $250 plus nearest deductible. After deductible, policy pays 80% or better.
The lowest rates available:
END