2019 Health Insurance Affordability Calculator
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Reviewed by Calculator Editorial Team
This calculator helps you determine the affordability of health insurance in 2019 by comparing your income to the estimated cost of coverage. It provides insights into whether health insurance is financially sustainable for you based on your household income and other factors.
How to Use This Calculator
To use the 2019 Health Insurance Affordability Calculator, follow these steps:
- Enter your total household income for 2019 in the designated field.
- Select your household size from the dropdown menu.
- Enter the estimated monthly health insurance premium you're considering.
- Click the "Calculate" button to see your results.
The calculator will display your income-to-insurance ratio, which helps determine if health insurance is affordable for your household. A ratio below 10% is generally considered affordable.
Formula Used
The affordability ratio is calculated using the following formula:
Affordability Ratio = (Monthly Insurance Premium / Annual Household Income) × 100
Where:
- Monthly Insurance Premium is the cost of your health insurance plan per month.
- Annual Household Income is your total household income for the year.
The result is expressed as a percentage. A ratio below 10% is typically considered affordable.
Worked Example
Let's say you have a household income of $60,000 and you're considering a health insurance premium of $200 per month.
- Calculate the annual household income: $60,000
- Calculate the monthly insurance premium: $200
- Apply the formula: (200 / 60,000) × 100 = 0.333...
- Round to two decimal places: 0.33%
In this example, the affordability ratio is 0.33%, which is well below the 10% threshold, indicating that the insurance is affordable for this household.
Interpreting Results
The affordability ratio helps you understand whether health insurance is financially sustainable for your household. Here's how to interpret the results:
- Below 10%: Your health insurance is affordable. The premium is a small percentage of your household income.
- 10% to 20%: Your health insurance is moderately affordable. The premium is a moderate percentage of your household income.
- Above 20%: Your health insurance may be unaffordable. The premium is a significant portion of your household income.
Keep in mind that this calculator provides an estimate. Other factors such as deductibles, copays, and out-of-pocket expenses can also affect the overall affordability of health insurance.
Frequently Asked Questions
The 10% affordability threshold is a general guideline that suggests health insurance is affordable if the monthly premium is less than 10% of your annual household income.
Household size affects affordability because the calculator divides the monthly insurance premium by the annual household income. A larger household size generally means a lower affordability ratio.
Other factors to consider include deductibles, copays, out-of-pocket maximums, and the quality of healthcare coverage. These factors can significantly impact the overall value of your health insurance plan.