Study on Health Insurance Affordability in Missouri

Basic Household Budgets and Expenses in Missouri

Economic research supports examining the behaviors of people with similar incomes to evaluate affordability. This study derives a price-point at which health care becomes affordable to low-income Missourians using data and findings about spending on basic necessities from two specific studies: Missouri Family Affirming Wages and Economic Policy Institute (EPI), Basic Family Budget.₁

The Missouri Family Affirming Wages study concluded that a single adult in St. Louis would need an annual income about 152 percent FPL ($15,808) to be self-sufficient. However, this figure assumes the availability of employer-sponsored insurance (ESI). Removing the cost of health coverage, a single adult in St. Louis would need an annual income of 144 percent FPL ($14,976) before accounting for health spending. (Table 1)

Table 1: Income Required to Meet Basic Needs in Missouri, Before Health Costs
Based on data from Missouri Family Affirming Wages

The Basic Family Budget examined regional estimates for essential needs, and determined that the ability to afford health coverage varies greatly by region and income. For example, a family of four living in a rural region of Missouri would need to earn about 110 percent FPL ($23,328) per year to cover basic household needs, before health care costs. (Table 2)

Table 2: Income Required to Meet Basic Needs in Missouri, Before Health Costs
Based on data from EPI Basic Family Budget