Coverage Affordability
Test coverage affordability using a caller-supplied income percentage.
Description
Premium affordability compares an annual employee premium with supplied household income.
Premium affordability compares an annual employee premium with supplied household income. The caller chooses the percentage criterion.1
Test coverage affordability using a caller-supplied income percentage.
When to use Coverage Affordability
Use this tool to test coverage affordability using a caller-supplied income percentage.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use Coverage Affordability and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter householdIncome, annualEmployeePremium, affordabilityPercent using the field table and calculation rules, then run the tool.
- Read premiumToIncomePercent, affordablePremiumLimit, premiumMargin, affordable. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| householdIncome | Household income | number; minimum: 0 | Required |
| annualEmployeePremium | Annual employee premium | number; minimum: 0 | Required |
| affordabilityPercent | Affordability threshold (%) | number; minimum: 0 | Required |
Enter positive income and nonnegative annual premium/criterion. Return ratio, allowed amount, signed margin and inclusive affordability flag.
premium%=100premium/income; allowed=income×criterion/100; margin=allowed−premium Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| premiumToIncomePercent | Premium-to-income percentage (%) | number; minimum: 0 |
| affordablePremiumLimit | Affordable premium limit | number; minimum: 0 |
| premiumMargin | Affordable limit minus premium | number |
| affordable | Coverage is affordable | boolean |
{
"input": {
"householdIncome": 50000,
"annualEmployeePremium": 4000,
"affordabilityPercent": 9
},
"output": {
"premiumToIncomePercent": 8,
"affordablePremiumLimit": 4500,
"premiumMargin": 500,
"affordable": true
}
}Limitations and assumptions
No current statutory threshold, household definition, employer safe harbor or benefit eligibility is determined.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use COBRA Premium: Calculate continuation premium from full plan cost and administrative load. For a complementary task, use HSA Deductible Screen: Compare plan figures with caller-supplied HSA thresholds.
References
-
Coverage Affordability — tool.io
Similar or alternative tools
- COBRA Premium
Calculate continuation premium from full plan cost and administrative load.
- HSA Deductible Screen
Compare plan figures with caller-supplied HSA thresholds.