30 Second Insurance Tips©

Tip 109- How Much Do You Spend On Health Care?

In 2010, when The Affordable Care Act became law, the United States spent 17.5% of GDP on
health care. At 12%, the Netherlands was the next highest.

New ACA regulations have set benchmarks defining what is “affordable.”

Premiums for individual coverage should not be more than 9.5% of W‐2 income. “Essential
benefit” rules cap deductibles at $2,000 and other Out of Pocket costs at $6,250.

Let’s add it up. The average single premium is around $468/month and employees pay about
30% of that or $140. That’s $1,680 a year, plus $2,000, plus $6,250. Total: $9,930.

If you earn $82,750 you’re like the Netherlands. If you make $56,400, you’re like the U.S.

With a little effort and luck, in the ‘state’ of Wellness, you’d spend much less on deductibles
and other out of pocket costs. We should move there!