![]() Liquid financial assets are those that are most easily converted to cash, including checking and saving accounts, money market accounts, certificates of deposit, savings bonds, non-retirement mutual funds, stocks and bonds. Generally, liquid financial assets are higher than net financial assets (which also reflect debt) and therefore for simplicity, we present liquid financial assets and report net financial assets in the Appendix. Based on an earlier KFF analysis, we developed two measures of household resources: liquid financial assets and net financial assets. This analysis focuses on non-elderly households, regardless of the types of coverages present. Many households have mixed insurance coverages, with members enrolled in different types of plans. The Survey of Consumer Finances provides a snapshot of household finances, including detailed information on debts, assets, income, and the types of health insurance present in the household. ![]() Lower-income households were much less likely to have the liquid assets to meet typical cost sharing. For example, 45% of single-person non-elderly households could not pay over $2,000 from current liquid assets, and 63% could not pay over $6,000. ![]() We find that large shares of non-elderly households do not have enough liquid assets to meet typical plan cost-sharing amounts. Because cost-sharing requirements are higher in family plans than in single plans, we show results separately for single-person households and households with more than one person. We estimate the share of households with enough savings to meet typical deductibles and out-of-pocket maximums in private health plans. To evaluate whether people can afford to pay cost-sharing amounts common with private insurance plans, we analyzed data from the 2019 Survey of Consumer Finances (SCF). Similarly, deductibles in non-group Marketplace plans can be much higher for enrollees not eligible for cost-sharing reductions. For employer-based coverage in 2021, the average deductibles for single coverage were $2,379 for covered workers at small firms and $1,397 for covered workers in larger firms. Cost-sharing in private health insurance plans has steadily increased over time. ![]() Enrollees in private health insurance plans may have to pay thousands of dollars to meet plan deductibles, coinsurance and copayments. Cost-sharing that is too high, however, can discourage enrollees from getting the care that they need or drive them into financial distress and even bankruptcy. Health plans use cost-sharing (deductibles, copayments, and coinsurance) as incentives for enrollees to use services efficiently and to shop for lower cost options when they do need care. ![]()
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