Study Finds Pervasive Misconceptions About Affordability of
Health Insurance for Uninsured Above Poverty Level

A majority of uninsured Americans with income above the poverty level cannot afford to buy health insurance, according to a recent study by the Department of Health & Human Services' (HHS) Agency for Healthcare Research and Quality (AHRQ).

When researchers studied the 2002 and 2003 data from the AHRQ Medical Expenditure Panel Survey, they discovered that using a family’s median net worth, rather than just income, provided a better estimate of an American family’s ability to afford health care. Median net worth is the value of savings plus other assets, minus debt.

"This study has important implications for defining who can afford to pay for health insurance in the next wave of healthcare reform," AHRQ Director Carolyn M. Clancy, M.D., said in an AHRQ press release. "We need accurate, evidence-based findings to ensure that we are providing policymakers with reliable information."

The median net worth of families that purchased health insurance during 2002 and 2003 was $105,819, which is almost 35 times greater than the median net worth of $3,057 for families that were uninsured, according to the study. In turn, the median income of families that purchased health insurance was $41,086. That is 2.3 times greater than the median income of $17,690 for families that were uninsured.

In addition, the researchers found that 4.1 percent of families that had access to employer-based health insurance were poor, with a family income below 100 percent of the federal poverty line, and 11.1 percent were low income. In contrast, 33.8 percent of families without access to employer-based health insurance were poor and 28.4 were low income, according to the study “Wealth, Income and The Affordability of Health Insurance," published in the May/June 2009 issue of Health Affairs.