Calif. middle class feels health insurance squeeze
By Christopher Cadelago and Phillip Reese, Sacramento Bee
Dawn and Nick LaPolla of Fair Oaks are solidly middle class, and they aren’t uninsured.
Yet their required switch to a new health insurance plan under federal changes puts them at a financial crossroads.
If they earn less than $94,200 a year, the family of four’s preferred plan through the California health exchange would cost about $750 a month. But if they make even slightly more, they’ll pay about $1,040. That’s because they would exceed the threshold to qualify for federal subsidies. Their current high-deductible plan, which expires in two months, costs $573 a month.
Unlike wealthier state residents who more easily can afford the new, often more comprehensive plans, or lower-income people aided by government subsidies, the LaPollas are part of a sizable segment of Californians slowly coming to grips with dedicating a greater percentage of their income to new policies.
For the vast majority of residents, the Covered California subsidy isn’t an issue. Low-income residents receive health insurance through Medi-Cal. Millions of others have insurance subsidized by their employer.
Yup, that would be us. We are going to a policy that has a higher deductible, doesn’t cover anything until you’ve covered the deductible and all for only $70 a month more than our current policy. If we want a policy like the one we have now, it will cost about $300 a month more.
It really is a shame… but, $94,200 is certainly not a Tahoe salary (except for a VERY small group of folks). For the past many years, our largest employers have gone to “part-time” employees to avoid having to pay for medical insurance. Has that changed under the new law? Are part-time employees now offered medical insurance?