Guidlines for Acquiring Affordable Health Insurance in Missouri

Affordability and Eligibility Guidelines for Public Programs

Established public programs have recognized eligibility and affordability guidelines to determine income levels at which certain basic needs become unaffordable. While these levels may not perfectly track with health care affordability, they do illustrate the income-level at which low-income families cannot afford even basic necessities, and would therefore be unlikely to pay toward health coverage.

The following programs use affordability guidelines:

• Missouri Low Income Home Energy Assistance Program: This program assists low-income Missourians with heating costs during winter months. Qualifying applicants are required to meet certain predetermined income guidelines for eligibility: approximately 123 percent FPL ($12,792) for an individual and 122 percent FPL ($21,472) for a family of three.
• Food stamp program: This program provides assistance to low-income families to purchase groceries. Federal eligibility guidelines are set at approximately 128 percent FPL ($13,312) for an individual and 127 percent FPL ($22,352) for a family of three.
• Earned Income Tax Credit (EITC): This federal tax credit program redistributes funds to low-income wage earners who meet program criteria because they have too little income to meet basic needs. For the 2007 tax filing year, an individual qualified for EITC if he/she earned less than 121 percent FPL ($12,584); a qualifying family of four with two children earned less than 188 percent FPL ($39,856).

These eligibility guidelines provide a reference for determining who cannot afford to pay health care costs. Because the fuel assistance, food stamp, and EITC programs provide aid to individuals below 130 percent FPL ($13,520) and up to 190 percent FPL for families ($33,440 for a family of three), it appears unaffordable for individuals and families at these income levels to contribute income toward health insurance premiums or anything beyond nominal copayments for care.