By Molly Mulebriar
Jorge is a devoted employee of the McAllen Independent School District in deep South Texas and like many other working Americans he struggles to pay for family health insurance for his wife and two children. The district offers a generous health insurance package but his cost to add his family is a hair above 9.2% of his annual household income. It’s a second mortgage he can’t afford.
Few employers contribute towards family insurance premiums. This is especially true for tax supported Texas public school districts. Over two decades ago the Texas legislature passed a law requiring public schools to contribute a minimum of $150 per month for each employee participating in a district’s health plan, a requirement that has not changed since. Annual rate increases over time have shifted more costs onto plan members making coverage unaffordable for many, especially those covering their families.
The ACA has changed the funding dynamics to the benefit of many working Americans who have access to family coverage through employer sponsored group plans.
According to the Department of Labor “coverage for family members of the employee is considered affordable if the employee’s cost of premiums for the lowest-cost plan that would cover all family members does not exceed 9.12% of the employee’s household income.”
Jorge’s experience at the McAllen Independent School District in deep South Texas is a good example of the impact ACA tax subsidies can have on working families.
The following table shows the payroll deduction schedule for the BISD’s +7,000 employee health plan:
Based on the lowest priced plan option the following tiers and family incomes qualify for ACA tax credits:
- Spouse: Household income < $70,825
- Children: Household income < $56,86
- Spouse & Children: Household income < $95,607
Jorge has a family of four with an annual household income of $95,607. His annual premium cost share to add his family to the MISD medical plan is $8,796. He is curious to find out what his tax credits would be if he moved his family coverage through the ACA Marketplace so he goes here.
He stars in shocked disbelief when the screen displays amazing news……………….
Jorge reviews plan options and chooses BCBS. He can afford a $500 deductible and a $0.00 cost family plan. By moving his family to BCBS through the ACA Marketplace his family saves $8,796.
Jorge decides to make The Great Escape and the freedom to choose what’s best for his family.
Finally, Jorge gets the bass boat he’s always wanted and his wife still loves him.
Today’s Homework Reading Assignment:
Brownsville ISD Employee Saves $7,597 On Family Health Insurance
San Felipe Del Rio ISD Goes from Self-Insured to Fully Insured
