Obama's health masterplan: Citizens struggling to pay premiums

A long-term plan to provide more US citizens with health insurance may fall short of hitting its targets as it is still too expensive for a lot of people, according to reports.

The Affordable Healthcare for America Act was one of the first measures undertaken by the Obama administration.

Part of the Act included the creation of a Health Insurance Exchange, through which individuals and smaller employers can purchase health coverage, with premium and cost-sharing credits available to those on low incomes.

However, according to a report in Live Insurance News, many are finding that the premiums are still too costly to be able to afford them.

It said many Americans are struggling to afford their current health insurance rates or remain without any coverage at all. Among Americans, 9% are currently paying a monthly premium of $500 to $1000 out of their own pocket for their health insurance coverage.

The website goes on to recommend that, in order to continue to have some coverage, people should consider buying a critical illness policy. It said these types of plans can be low cost, especially when bundled with a ‘high deductible' health insurance policy.

In the case that families follow the traditional route (in the US) for obtaining health insurance - that is, to contact an insurance company and pay the monthly premiums for a policy - it recommends that "several options be researched".