Colorado families are struggling to afford health care coverage
01 05 09 - 12:30
Health study finds family budgets bare
By Jennifer Brown - denverpost.com
Many Colorado families have nothing left to spend on health insurance after paying for food, housing, heat and child care.
Even those with mid-level incomes — up to $106,000 for a family of four — often stop saving or spending on education to afford medical insurance, according to a new analysis released Wednesday.
An examination of the budgets of about 1,000 Colorado families found that 25 percent of those earning less than $84,000 a year spend more money than they make.
But even if they have money left at the end of the month, it doesn't mean they can afford health care coverage, said Liz Feder, lead author of the research from the Colorado Center on Law and Policy.
When families spend at least 5 percent of their income on insurance, the toll eats away at other spending. That means some Coloradans skimp on heat, may use substandard child care or have inadequate housing, Feder said.
They also stop saving money, meaning they couldn't sustain their lifestyle if they were laid off, or afford community college to advance their careers.
The report provides context for policymakers debating health care reform, including whether to force people to buy their own insurance, said Denise de Percin, executive director of the Colorado Consumer Health Initiative.
Study authors said lawmakers should consider how forcing people to buy insurance might affect families' choices.
Government subsidies that would help people pay for insurance should fluctuate not just based on family income but on child-care costs, student loans or transportation costs for rural residents, they said.
More than 1,000 Coloradans completed budget worksheets last summer at community health clinics. Participants had to make less than 500 percent of the federal poverty level, or about $106,000 for a family of four.
Jennifer Brown: 303-954-1593 or jenbrown@denverpost.com