Study: In 20 States, Millions in "Medicaid Coverage Gap" Could Save Thousands With Alternative Coverage

MOUNTAIN VIEW, CA--(Marketwired - Sep 16, 2015) - Today AgileHealthInsurance.com released a new study showing term health insurance is half the cost of Obamacare for people in the 20 states that did not expand Medicaid. The analysis, based on government data and a database of term premium rates, reveals consumers in the "Medicaid gap" could save up to $260 a month by enrolling in term insurance rather than Obamacare. The Medicaid gap refers to the situation where individuals make too much for Medicaid but too little to trigger premium subsidies for Obamacare plans on the government marketplace.

Thirty states and the District of Columba have adopted Medicaid expansion, but 20 states have not. According to the Kaiser Family Foundation, nearly 4 million low-income uninsured adults fall into a coverage gap because they are not eligible for Obamacare subsidies or for Medicaid coverage.

The analysis compares premiums for the least expensive Obamacare bronze plan with a similar term insurance plan in the most populous city of each state that did not expand eligibility for Medicaid. In 2015, the highest possible out-of-pocket maximum for an individual Obamacare plan was $6,600, and the average deductible for bronze plans was $5,181. The study compares these bronze plans to the least expensive term insurance plan with a deductible no higher than $5,000, an out-of-pocket maximum no higher than $6,000 and a lifetime maximum of at least $1 million.

In looking at premiums for 30-, 40- and 50-year-old nonsmokers, savings for term insurance ranged from 11 percent for a 50-year-old man in Oklahoma City, Oklahoma, to 78 percent for a 30-year-old man in Cheyenne, Wyoming.

For those in the Medicaid coverage gap, the average savings per month were $136 for 40-year-old men and $104 for 40-year-old women. For 30-year-old men and women, buying term insurance instead of an Obamacare exchange plan saved $129 and $126 per month, respectively. The largest dollar savings for all ages and genders were in Cheyenne, Wyoming, where 50-year-olds and 40-year-old men would save more than $250 per month with term insurance.

"Finding affordable health insurance coverage is challenging, especially for low-income consumers who don't qualify for subsidies or Medicaid," said Bruce Telkamp, CEO of AgileHealthInsurance.com. "Term health insurance will often be the best health insurance option for these Americans who have been left behind."

Term health insurance does not provide identical coverage as Obamacare plans, and benefit and eligibility differences contribute to the cost savings observed. Consumers apply and, depending on their health status (including pre-existing conditions), they may or may not be eligible for specific plans. With term health insurance, some consumers may be subject to the Obamacare tax, but people in the Medicaid gap qualify for an exemption.

Consumers in the Medicaid gap do not have to pay the Obamacare uninsured tax, and millions are going without coverage. However, choosing term insurance instead of Obamacare can save thousands of dollars in premiums. For more information on premiums in states that did not expand Medicaid, read the article on AgileHealthInsurance's Learning Center at www.AgileHealthInsurance.com.

AgileHealthInsurance.com is the Internet's first site dedicated to helping consumers understand the benefits of term health insurance. These new plans are the culmination of extensive research on health insurance needs in the Affordable Care Act era, and consumers visiting AgileHealthInsurance.com will be able to find the lowest prices for the term health plans it offers. Additional information about AgileHealthInsurance can be found at www.AgileHealthInsurance.com.