How does Idaho define "affordability" in health insurance?

Idaho defines "affordability" in health insurance by specifying that an employee's premium should not exceed a certain percentage of their household income. This measure is crucial as it ensures that health insurance remains financially accessible for individuals and families, promoting the goal of the Affordable Care Act (ACA) to provide adequate coverage without imposing excessive financial burdens.

This definition is rooted in the principle that health insurance costs should be proportional to a household's ability to pay, preventing low-income families from being priced out of necessary health coverage. The established percentage reflects considerations about what is reasonable for individuals to pay, ensuring that a portion of their income is available for other essential expenses.

In contrast, the other options do not align with Idaho's definition of affordability. The first option suggests a fixed percentage (10%) that may not fully capture the state's broader, more nuanced requirements regarding household income and premium costs. The third option misinterprets the concept, as affordability is not determined solely by employment status but focuses on the economic relationship between premiums and household income. The fourth option inaccurately implies a requirement related to total household income in relation to national averages, which does not pertain to the assessment of affordability in health insurance coverage.